Is Brookdale Senior Living, Inc. overvalued or undervalued?

As of 6 May 2021, the valuation grade for Brookdale Senior Living, Inc. changed from attractive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued given its significant negative metrics, including a Price to Book Value of 11.15 and an EV to EBITDA ratio of 3.13, which suggests that the market may be pricing in more value than the company can deliver. Additionally, the Return on Equity (ROE) stands at a staggering -111.50%, further highlighting the challenges the company faces.
In comparison to its peers, Brookdale's P/E ratio is not applicable due to its loss-making status, while Universal Health Services, Inc. has a P/E of 9.2050, indicating a more favorable valuation. Surgery Partners, Inc., also classified as risky, has a higher EV to EBITDA ratio of 8.4432, suggesting that Brookdale may be less attractive relative to its competitors. Despite recent stock performance showing a 59.24% year-to-date return compared to the S&P 500's 12.22%, the overall valuation metrics indicate that Brookdale Senior Living, Inc. is overvalued in the current market context.