Is BellRing Brands, Inc. overvalued or undervalued?

As of 6 February 2020, the valuation grade for BellRing Brands, Inc. has moved from fair to risky, indicating a potential concern regarding its valuation. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 27, which is significantly higher than the peer average of 15.96 for BellRing, and an EV to EBITDA ratio of 18.65 compared to the peer average of 11.76. Additionally, the PEG ratio of 0.55 suggests that the stock may not be justified at its current price given its growth prospects.
In comparison to peers, Celsius Holdings, Inc. is categorized as very expensive with a P/E of 95.37, while Coca-Cola Consolidated, Inc. is deemed attractive with a P/E of 16.84. The notable outlier in BellRing's metrics is its negative Book Value, which raises further questions about its financial health. Over the past year, BellRing's stock has returned -38.21%, significantly underperforming the S&P 500's 17.14% return, reinforcing the notion that the stock may be overvalued at its current price.