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

As of 25 June 2019, the valuation grade for Barnes & Noble Education, Inc. moved from fair to risky, indicating a deterioration in its financial standing. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.42, an EV to EBIT of 19.80, and an EV to EBITDA of 8.85. In comparison, peers such as The Honest Co., Inc. have a significantly higher P/E ratio of 23.51, while Envela Corp. boasts a more attractive EV to EBITDA of 15.80, highlighting the relative weakness of Barnes & Noble Education.
The company's stock has underperformed against the S&P 500, with a one-year return of -19.24% compared to the index's 17.14%, and a staggering three-year return of -96.52% versus 70.41% for the S&P 500. These figures reinforce the notion that Barnes & Noble Education is currently overvalued in the market.