Is Anywhere Real Estate, Inc. overvalued or undervalued?

As of 23 February 2023, the valuation grade for Anywhere Real Estate, Inc. has moved from attractive to risky, indicating a significant deterioration in its investment appeal. The company is currently assessed as overvalued, particularly given its negative P/E ratio and low price-to-book value of 0.29. Other key ratios include an EV to EBIT of 3.71 and an EV to EBITDA of 1.15, which further highlight the company's challenging financial position.
In comparison to its peers, Anywhere Real Estate, Inc. shows a stark contrast with Redfin Corp., which has a P/E ratio of -7.74, and Marcus & Millichap, Inc. with a P/E of -173.35, both also classified as risky. Meanwhile, Forestar Group, Inc., categorized as attractive, has a P/E of 5.68, underscoring the relative weakness of Anywhere's valuation metrics. Additionally, the company's recent stock performance has lagged behind the S&P 500, particularly over the past three years, where it has seen a decline of 64.93% compared to the index's gain of 58.74%.