Is BigBear.ai Holdings, Inc. overvalued or undervalued?

As of 17 March 2022, the valuation grade for BigBear.ai Holdings, Inc. moved from does not qualify to risky. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 5.86, an EV to EBIT of -21.34, and an EV to EBITDA of -28.03, indicating significant losses and a lack of profitability.
In comparison to its peers, BigBear.ai's P/E ratio is not applicable due to losses, while Priority Technology Holdings, Inc. has a P/E of 19.49 and an EV to EBITDA of 7.73, suggesting a more favorable valuation. Additionally, Red Violet, Inc. is categorized as very expensive with a P/E of 77.67, highlighting the relative overvaluation of BigBear.ai. Despite a strong one-year stock return of 224.03% compared to the S&P 500's 10.26%, the underlying financial metrics suggest that the stock is not justified at its current price level.