Is ARKO Corp. overvalued or undervalued?

As of 3 May 2024, the valuation grade for ARKO Corp. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently assessed as overvalued. Key ratios include a Price to Book Value of 1.40, an EV to EBIT of 11.62, and an EV to EBITDA of 4.94, all of which suggest that the company's valuation metrics are not favorable compared to its peers.
In comparison to its peers, ARKO Corp. has a notably negative P/E ratio of -131.73, while GeneDx Holdings Corp. is at -63.58 and Rush Street Interactive, Inc. shows a P/E of 151.37, highlighting the stark contrast in valuation. Additionally, Natural Grocers by Vitamin Cottage, Inc. is categorized as expensive with a P/E of 21.91, further emphasizing ARKO's relative overvaluation. Over the past year, ARKO Corp. has underperformed significantly, with a stock return of -26.35% compared to the S&P 500's return of 10.26%, reinforcing the notion that the stock is not only overvalued but also struggling in the market.