Is Classover Holdings, Inc. overvalued or undervalued?

As of 10 February 2025, the valuation grade for Classover Holdings, Inc. moved from expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued, particularly given its P/E ratio of -10.56 and EV to EBITDA of -14.77, which suggest significant challenges in generating earnings relative to its valuation. The absence of a PEG ratio and dividend yield further underscores its precarious financial position.
In comparison to its peers, Classover Holdings, Inc. is notably underperforming; for instance, its P/E ratio is significantly lower than the industry average, which raises concerns about its growth prospects. The stock's performance has been dismal, with a year-to-date return of -87.23%, contrasting sharply with the S&P 500's 12.22% return during the same period, reinforcing the notion that the stock is not only risky but also potentially overvalued in the current market environment.