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, indicating a significant shift in its perceived financial health. The company appears to be overvalued, particularly given its negative performance metrics. Key ratios include a Price to Book Value of 1.34, an EV to Sales ratio of 0.12, and an EV to EBITDA of -6.18, all of which suggest that the company is struggling to generate value relative to its market price.
When compared to peers, Cheche Group's EV to EBITDA ratio of -6.18 is notably worse than CI&T, Inc., which has a ratio of 15.3518, indicating a much more favorable valuation. Additionally, CSP, Inc. also shows a risky valuation with an EV to EBITDA of -21.9654, but Cheche Group's metrics suggest it is in a more precarious position. Despite the company's strong recent stock performance, with a 1-month return of 85.26% compared to the S&P 500's 2.33%, this does not fundamentally alter the valuation outlook, which remains concerning given the underlying financial ratios.