Is Better Choice Co., Inc. overvalued or undervalued?

As of 11 August 2022, Better Choice Co., Inc. has moved from a valuation grade of very attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently overvalued given its troubling financial metrics, including a Price to Book Value of 2.63 and an EV to Sales ratio of 0.63, which suggest that the market is pricing the company higher than its actual performance warrants. Additionally, the company has a negative P/E ratio due to being loss-making, and a ROCE of -74.04% further underscores its operational inefficiencies.
In comparison to its peers, Better Choice Co., Inc. shows stark contrasts; for instance, Tandy Leather Factory, Inc. is rated attractive with a P/E of 2.32, while Kirkland's, Inc. is also rated risky with a P/E of -1.10. The company's recent stock performance has been dismal, with a year-to-date return of -74.54%, significantly underperforming the S&P 500, which has returned 2.44% in the same period. Overall, the combination of poor financial ratios and negative performance trends leads to the conclusion that Better Choice Co., Inc. is overvalued.