Is Cardinal Health, Inc. overvalued or undervalued?

As of 5 May 2022, Cardinal Health, Inc. moved from a very attractive valuation grade to a risky one. The company appears to be overvalued, given its high P/E ratio of 27 compared to its peer average of 24.25, and a negative price-to-book value of -14.78, indicating significant concerns about its asset valuation. Additionally, the EV to EBITDA ratio stands at 15.20, which is higher than the industry norm, suggesting that the market may be pricing in excessive growth expectations.
In comparison to its peers, Cardinal Health's PEG ratio of 0.23 is relatively low, but this is overshadowed by the negative book value and the high EV to Capital Employed ratio of 34.11, which raises red flags about the company's financial health. Over the past year, Cardinal Health has outperformed the S&P 500 with a return of 34.67% compared to 17.14%, but the recent weekly performance shows a decline of 1.59%, contrasting with the S&P's gain of 1.05%. This mixed performance further complicates the valuation outlook for the company.