Is Cannae Holdings, Inc. overvalued or undervalued?

As of 17 February 2022, the valuation grade for Cannae Holdings, Inc. moved from expensive to risky, indicating a shift in perception regarding its financial health. Based on the current metrics, the company appears to be overvalued. The Price to Book Value stands at 0.96, while the EV to Sales ratio is 3.84, and the EV to EBIT is -20.21, reflecting significant challenges in profitability and valuation.
In comparison to peers, Cannae Holdings has a notably negative EV to EBITDA of -30.02, while Texas Roadhouse, Inc. is categorized as very expensive with a P/E ratio of 24.79, and Wingstop, Inc. also risky with a P/E of 48.65. This highlights the relative underperformance of Cannae Holdings within its industry. Furthermore, the company's stock has underperformed against the S&P 500 over various periods, notably with a YTD return of -1.61% compared to the S&P 500's 12.22%, reinforcing the notion of overvaluation.