Is BARK, Inc. overvalued or undervalued?

As of 7 June 2021, BARK, Inc. has moved from a grade of "does not qualify" to "risky," indicating a significant downgrade in its valuation outlook. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 1.60 and an EV to Sales ratio of 0.23, which suggests that the market may not be pricing in the underlying risks adequately. Additionally, the company has a negative ROCE of -62.16% and an ROE of -26.89%, further highlighting its financial struggles.
In comparison to its peers, BARK, Inc.'s EV to EBITDA stands at -5.48, while Fresh Del Monte Produce, Inc. and Vital Farms, Inc. have EV to EBITDA ratios of 7.38 and 17.34, respectively, indicating that BARK is significantly underperforming relative to these companies. Given these factors, BARK, Inc. is likely overvalued, especially in light of its poor stock performance, which has seen a year-to-date decline of 55.81% compared to a modest gain of 2.44% for the S&P 500.