Is BuzzFeed, Inc. overvalued or undervalued?

As of 16 May 2022, the valuation grade for BuzzFeed, Inc. has moved from expensive to risky, indicating a significant deterioration in its perceived value. The company appears to be overvalued, particularly given its P/E ratio of -3.36 and an EV/EBITDA ratio of -103.12, which are starkly negative compared to industry norms. Additionally, the absence of a PEG ratio further emphasizes the lack of growth prospects.
In comparison to peers, BuzzFeed's valuation metrics are concerning; for instance, its P/E ratio is significantly worse than the industry average, which suggests that investors are not willing to pay for earnings. Notably, the stock has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -28.09% compared to the S&P 500's 12.22%. This underperformance reinforces the notion that BuzzFeed, Inc. is currently overvalued.