Is Cimpress Plc overvalued or undervalued?

As of 1 November 2019, the valuation grade for Cimpress Plc has moved from fair to risky, indicating a shift towards a more cautious outlook on the company's financial health. The company appears to be overvalued given its current P/E ratio of 11, which is significantly higher than the industry average, and a negative price-to-book value of -3.48. Additionally, the EV to EBITDA ratio stands at 9.15, suggesting that the company's valuation may not be justified by its earnings potential.
In comparison to its peers, Cimpress Plc's P/E ratio of 80.96 starkly contrasts with Warner Music Group Corp.'s more reasonable P/E of 27.05, while Deluxe Corp. offers a very attractive P/E of 9.65. The company's recent stock performance has been mixed, with a year-to-date return of -12.30% compared to the S&P 500's gain of 12.22%, and a one-year return of -25.51% against the S&P 500's 17.14%. This underperformance reinforces the notion that Cimpress Plc may be overvalued in the current market environment.