Is Anywhere Real Estate, Inc. overvalued or undervalued?

As of 23 February 2023, the valuation grade for Anywhere Real Estate, Inc. has moved from fair to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued, particularly when considering its financial metrics. Key ratios include a Price to Book Value of 0.29, an EV to EBIT of 3.71, and an EV to EBITDA of 1.15, which suggest that the company is trading at a low valuation relative to its earnings potential and asset base.
In comparison to its peers, Anywhere Real Estate, Inc. has a significantly lower EV to EBITDA ratio than Cushman & Wakefield Plc, which stands at 5.7095, and a worse P/E ratio than Opendoor Technologies, Inc., which is at -15.7630. The company's recent stock performance has been strong, with a year-to-date return of 123.03%, significantly outperforming the S&P 500's return of 12.22% in the same period. However, the long-term returns show a decline, with a 5-year return of -31.41% compared to the S&P 500's 96.61%, reinforcing the notion that the current valuation may not be sustainable.