Is Clover Health Investments Corp. overvalued or undervalued?

As of 17 May 2021, Clover Health Investments Corp. moved from a grade of does not qualify to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued given its high Price to Book Value of 4.80 and an EV to Sales ratio of 0.98, which suggests that the market is pricing the stock at a premium relative to its sales performance. Additionally, the company's negative ROE of -7.27% further underscores its financial struggles.
In comparison to its peers, Clover Health's valuation metrics are concerning; for instance, Primerica, Inc. has a P/E ratio of 12.59 and Lincoln National Corp. boasts a much lower EV to EBITDA of 0.00, indicating that they are performing better in terms of profitability and valuation. The stock's recent performance shows a 1-year return of 2.33%, which is significantly lower than the S&P 500's return of 17.14%, reinforcing the notion that Clover Health is not only overvalued but also underperforming relative to the broader market.