Is Better Home & Finance Holding Co. overvalued or undervalued?

As of 14 November 2023, the valuation grade for Better Home & Finance Holding Co. has moved from does not qualify to risky. The company is currently assessed as overvalued given its negative price-to-book value of -1.87 and a P/E ratio that is not applicable due to losses. Additionally, the EV to EBITDA ratio stands at 0.56, which, while low, does not compensate for the overall financial instability indicated by the other ratios.
In comparison to its peers, Better Home & Finance Holding Co. shows significant underperformance. For instance, Ocwen Financial Corp. has a P/E ratio of 3.79 and an EV to EBITDA of 0.13, while Finance of America Cos., Inc. has a P/E of 168.54, indicating a much stronger valuation position. The company's recent stock performance has been disappointing, with a 1-year return of -39.59%, contrasting sharply with the S&P 500's 10.26% return over the same period, further reinforcing the view that it is overvalued in the current market context.