Is Bakkt Holdings, Inc. overvalued or undervalued?

As of 17 February 2022, Bakkt Holdings, Inc. has moved from a grade of "does not qualify" to "risky." The company is currently overvalued, given its significant financial challenges. Key ratios include a Price to Book Value of 4.39, an EV to EBIT of -2.08, and an ROCE of -763.25%. These figures highlight the company's loss-making status and poor returns on capital.
In comparison to peers, Bakkt's P/E ratio is not applicable due to losses, while Longboard Pharmaceuticals, Inc. has a P/E of -27.04, and Bit Digital, Inc. shows a P/E of -6.38. The stark contrast in valuation metrics indicates that Bakkt is struggling relative to its industry. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -50.46% compared to the index's 2.44%.