Is Big Lots, Inc. overvalued or undervalued?

As of 8 July 2024, the valuation grade for Big Lots, Inc. has moved from risky to does not qualify, indicating significant deterioration in its financial health. The company is overvalued given its negative valuation metrics, including a Price to Book Value of -0.02, an EV to EBIT of -3.48, and an EV to EBITDA of -6.14. These figures suggest that the market is not valuing the company's assets appropriately, especially in comparison to peers like Bed Bath & Beyond, which has a more favorable EV to EBITDA ratio.
The stock has performed poorly against the S&P 500, with a year-to-date return of -99.89% compared to the index's 12.22%. This stark contrast reinforces the notion that Big Lots, Inc. is overvalued in the current market environment.