Is Babcock & Wilcox Enterprises, Inc. overvalued or undervalued?

As of 8 November 2022, the valuation grade for Babcock & Wilcox Enterprises, Inc. moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios include an EV to EBITDA of 8.58, an EV to Sales ratio of 0.72, and a ROCE of 63.39%, which, despite being high, is overshadowed by the company's negative book value and loss-making status.
In comparison to peers, Babcock & Wilcox's EV to EBITDA ratio is more favorable than PAR Technology Corp. at -152.0016, but less favorable than Diebold Nixdorf, Inc. at 6.3272. The overall peer group reflects a challenging environment, with many companies also categorized as risky. The company's recent stock performance shows a decline of 42.76% year-to-date, contrasting sharply with the S&P 500's modest gain of 2.44%, reinforcing the notion of overvaluation amidst broader market trends.