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

As of 7 July 2025, Better Choice Co., Inc. has moved from a fair to an attractive valuation grade, indicating a potential undervaluation. The company appears to be undervalued, particularly given its Price to Book Value of 2.63 and an EV to Sales ratio of 0.63, which suggests that the market may not be fully recognizing its value relative to its sales. Additionally, the EV to Capital Employed ratio stands at 2.75, further supporting the notion that the company is undervalued compared to its capital investments.
In comparison to its peers, Better Choice Co., Inc. has a more favorable valuation profile than Kirkland's, Inc., which has a P/E ratio of -1.9048, and Brilliant Earth Group, Inc., which has a P/E ratio of -60.3981. Despite its attractive valuation grade, the company's recent stock performance has been concerning, with a year-to-date return of -85.57% compared to the S&P 500's gain of 12.22%, highlighting the significant challenges it faces in the market.