Is Compass Minerals International, Inc. overvalued or undervalued?

As of 7 February 2024, the valuation grade for Compass Minerals International, Inc. has moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued, as evidenced by its Price to Book Value of 3.61 and an EV to EBITDA ratio of 10.74, both of which suggest that the stock is trading at a premium relative to its earnings potential. Additionally, the company has a negative ROE of -30.78%, highlighting significant financial challenges.
In comparison to peers, Compass Minerals has a P/E ratio that is not applicable due to losses, while Tronox Holdings Plc has a P/E of -3.44 and Green Plains, Inc. has a P/E of -6.44, both indicating struggles within the industry. The company's recent stock performance shows a YTD return of 60.80%, significantly outperforming the S&P 500's 12.22% return, but this is overshadowed by a 5-year return of -69.65% compared to the S&P 500's 96.61%. Overall, the financial metrics and peer comparisons suggest that Compass Minerals is currently overvalued.