Is Cheer Holding, Inc. overvalued or undervalued?

As of 15 January 2021, Cheer Holding, Inc. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its financial metrics. The P/E ratio stands at 1, while the Price to Book Value is notably low at 0.05, indicating significant undervaluation relative to its book value. Additionally, the EV to EBITDA ratio is at -5.74, which reflects negative enterprise value relative to earnings before interest, taxes, depreciation, and amortization.
In comparison to peers, Cheer Holding, Inc. does not qualify for a reliable valuation, while Porch Group, Inc. has a P/E ratio of -27.89, and OppFi, Inc. shows a P/E of 11.24, indicating a more favorable valuation in the market. Furthermore, Cheer Holding's recent stock performance has been poor, with a year-to-date return of -41.37%, contrasting sharply with a modest 2.44% return from the S&P 500, reinforcing the notion that the stock is overvalued in the current market context.