Is Cheche Group, Inc. overvalued or undervalued?

As of 9 November 2023, the valuation grade for Cheche Group, Inc. has moved from does not qualify to risky. The company appears to be overvalued given its current financial metrics. The P/E ratio is not applicable due to losses, while the Price to Book Value stands at 1.34. Notably, the EV to EBITDA is -6.18, indicating negative earnings before interest, taxes, depreciation, and amortization, which raises concerns about the company's profitability.
In comparison to its peers, Cheche Group's EV to EBITDA ratio is significantly worse than that of CI&T, Inc., which has an attractive valuation with an EV to EBITDA of 11.4105. Other peers like Quantum Computing, Inc. and CSP, Inc. also show negative ratios, but Cheche's performance is particularly concerning with an EV to Sales ratio of 0.12. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -11.56% compared to the S&P's 2.44%. Overall, these factors suggest that Cheche Group, Inc. is overvalued in the current market environment.