Is Consensus Cloud Solutions, Inc. overvalued or undervalued?

As of 2 March 2022, the valuation grade for Consensus Cloud Solutions, Inc. moved from does not qualify to risky, indicating heightened concerns regarding its financial metrics. The company appears to be undervalued, especially when considering its P/E ratio of 5.15, which is significantly lower than its peers such as Magic Software Enterprises Ltd. with a P/E of 17.87 and GDEV, Inc. at 7.28. Additionally, the EV to EBITDA ratio stands at 5.75, further supporting the notion of undervaluation.
In comparison to its peers, Consensus Cloud Solutions, Inc. shows a stark contrast with NextNav, Inc., which has a P/E ratio of -25.04, and Weave Communications, Inc. at -21.44, both categorized as risky. The company's return over the past year of 35.6% outperformed the S&P 500's return of 10.26%, suggesting that despite its current valuation concerns, the market may be recognizing its potential. Overall, the combination of low valuation ratios and recent performance indicates that Consensus Cloud Solutions, Inc. is undervalued relative to its peers and market expectations.