Is Brookdale Senior Living, Inc. overvalued or undervalued?

As of 6 May 2021, the valuation grade for Brookdale Senior Living, Inc. has moved from attractive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a price-to-book value of 11.15 and an EV to EBITDA ratio of 3.13, despite the negative ROE of -111.50%.
In comparison to its peers, National HealthCare Corp. has a more favorable P/E ratio of 15.83 and an EV to EBITDA of 8.29, suggesting that Brookdale's valuation is not justified when looking at industry standards. Additionally, Community Health Systems, Inc. is also categorized as risky but has a significantly lower EV to EBITDA of 8.45. The recent stock performance shows that Brookdale has outperformed the S&P 500 year-to-date with a return of 37.38%, yet this does not negate the concerns raised by its financial ratios and peer comparisons.