Is Barnes & Noble Education, Inc. overvalued or undervalued?

As of 25 June 2019, the valuation grade for Barnes & Noble Education, Inc. has moved from attractive to risky, indicating a shift in market perception. The company is currently considered overvalued given its financial metrics, with a price-to-book value of 1.42 and an EV to EBITDA ratio of 8.85, which are not compelling in comparison to its peers. Notably, the company has a negative return on equity (ROE) of -1.88%, reflecting ongoing challenges in profitability.
In comparison to its peers, Barnes & Noble Education, Inc. has a significantly lower EV to EBITDA ratio than The Honest Co., Inc., which stands at 26.7274, and Sportsman's Warehouse Holdings, Inc. with 14.9496. This disparity highlights the company's struggles in generating value relative to its market price. Additionally, while the stock has outperformed the S&P 500 in the past year with a return of 83.68% compared to 10.26%, the overall financial health and valuation metrics suggest that the company is currently overvalued.