Is Belpointe PREP LLC overvalued or undervalued?

As of 16 May 2022, the valuation grade for Belpointe PREP LLC has moved from does not qualify to risky, indicating a heightened level of concern regarding its financial health. The company appears to be overvalued, particularly given its negative performance metrics. Key ratios include a Price to Book Value of 0.85, an EV to EBIT of -14.74, and an EV to EBITDA of -23.76, all of which suggest significant operational challenges.
In comparison to peers, Belpointe PREP LLC's P/E ratio is notably worse than Redfin Corp.'s at -7.74 and Marcus & Millichap, Inc.'s at -173.35, both of which also carry risky valuations. The company's recent stock performance has been underwhelming, with a year-to-date return of -16.34%, contrasting with the S&P 500's positive return of 2.44% during the same period. This further reinforces the notion that Belpointe PREP LLC is currently overvalued in the market.