Is Altisource Portfolio Solutions SA overvalued or undervalued?

As of 26 February 2019, the valuation grade for Altisource Portfolio Solutions SA moved from very attractive to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued, primarily due to its negative earnings and poor financial ratios. Key ratios include a Price to Book Value of -0.61, an EV to EBIT of 5.52, and an EV to EBITDA of 2.90, all of which reflect underlying financial challenges.
In comparison to its peers, Altisource's performance is notably weaker. For instance, LendingTree, Inc. has a P/E ratio of -15.53 and an EV to EBITDA of 12.37, while Ocwen Financial Corp. is rated very attractive with a P/E of 3.79 and an EV to EBITDA of 0.13. The stark contrast in valuations suggests that Altisource is not only underperforming relative to its competitors but also carries a higher risk profile. Despite a recent strong performance against the S&P 500 over the past month, the long-term returns indicate a troubling trend, reinforcing the conclusion that the company is overvalued.