Is CarParts.com, Inc. overvalued or undervalued?

As of 7 March 2023, the valuation grade for CarParts.com, Inc. has moved from fair to risky, indicating a more cautious outlook on the company's financial health. The company appears to be overvalued, given its negative P/E ratio and concerning return metrics. Key ratios include a Price to Book Value of 0.77, an EV to EBIT of -0.54, and an EV to EBITDA of -0.93, all of which suggest significant financial distress compared to industry norms.
In terms of peer comparison, CarParts.com, Inc. has a valuation that is less favorable than Betterware de México SAB de CV, which has a P/E of 18.73, and Haverty Furniture Cos., Inc., which boasts a very attractive P/E of 36.45. The company's recent stock performance has been poor, with a year-to-date return of -27.81% compared to the S&P 500's 12.22%, reinforcing the notion that it is currently overvalued in the market.