Is Anterix, Inc. overvalued or undervalued?

As of 26 June 2024, Anterix, Inc. has moved from a fair to a risky valuation grade. The company is currently overvalued given its financial metrics, including a price-to-book value of 3.57 and an EV to sales ratio of 83.06, which indicates a significant premium compared to its earnings potential. The negative ROCE of -43.35% and ROE of -18.29% further highlight the company's struggles in generating returns for shareholders.
In comparison to peers, Anterix's valuation appears less favorable; for instance, Gogo, Inc. has a P/E ratio of 32.08 and an EV to EBITDA of 19.68, while Spok Holdings, Inc. boasts a very attractive valuation with a P/E of 20.67 and an EV to EBITDA of 13.04. The stark contrast in these ratios suggests that Anterix is not only underperforming but is also priced at a level that does not reflect its current financial health. Recent stock performance shows that Anterix has lagged behind the S&P 500, with a year-to-date return of -7.60% compared to the index's 2.44%, reinforcing the notion that the stock is overvalued.