Is Camping World Holdings, Inc. overvalued or undervalued?

As of 1 May 2024, the valuation grade for Camping World Holdings, Inc. has moved from very attractive to risky, indicating a significant deterioration in its investment appeal. The company is currently overvalued, as evidenced by its Price to Book Value of 6.15 and an EV to EBITDA ratio of 18.05, which are considerably higher than those of its peers. In comparison, Rush Enterprises, Inc. has a fair valuation with an EV to EBITDA of 8.70, while PriceSmart, Inc. shows a more reasonable EV to EBITDA of 10.61.
The company's financial performance is concerning, highlighted by a negative ROE of -14.28% and a low ROCE of 5.67%. Additionally, Camping World has underperformed relative to the S&P 500, with a year-to-date return of -16.94% compared to the index's 12.22%, and a staggering 5-year return of -41.75% against the S&P 500's 96.61%. These factors collectively reinforce the view that Camping World Holdings is currently overvalued.