Is Altisource Portfolio Solutions SA overvalued or undervalued?

As of 26 February 2019, the valuation grade for Altisource Portfolio Solutions SA has moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued given its negative price-to-book value of -0.61 and a high EV to EBITDA ratio of 2.90, which suggests that investors are paying a premium for earnings that are not currently being generated. Additionally, the negative ROCE and ROE further reinforce the notion that the company is struggling financially.
In comparison to its peers, Altisource Portfolio Solutions SA's P/E ratio is significantly worse at -38.55 compared to loanDepot, Inc. at -19.16 and Ocwen Financial Corp. which has a very attractive P/E of 3.98. The stark contrast in valuation metrics highlights the challenges faced by Altisource in the current market environment. While the company has shown a strong year-to-date return of 110.11%, it has significantly underperformed against the S&P 500 over the longer term, particularly with a 3-year return of -87.30% compared to the S&P 500's 70.41%.