Is Clarus Corp. overvalued or undervalued?

As of 27 February 2023, the valuation grade for Clarus Corp. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued, given its negative financial metrics, including a Price to Book Value of 0.63, an EV to EBITDA of -12.07, and a ROE of -16.85%. Comparatively, peers like Malibu Boats, Inc. and Sturm, Ruger & Co., Inc. have P/E ratios of 41.72 and 141.55, respectively, highlighting the significant disparity in valuation.
Clarus Corp.'s recent stock performance has been poor, with a YTD return of -13.97% compared to the S&P 500's 12.22%, and a staggering 5Y return of -73.19% against the S&P 500's 96.61%. This further reinforces the notion that the stock is overvalued in its current state.