Is Cross Country Healthcare, Inc. overvalued or undervalued?

As of 6 November 2024, the valuation grade for Cross Country Healthcare, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued, particularly given its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of 1.01, an EV to EBITDA of 26.84, and a ROCE of -1.62%, all of which suggest underlying weaknesses in profitability and valuation.
When compared to peers, Cross Country Healthcare stands out negatively; for instance, Barrett Business Services, Inc. has a P/E of 20.28 and an EV to EBITDA of 11.86, reflecting a much healthier valuation profile. In contrast, Kelly Services, Inc. also shows a risky valuation with a P/E of 5.48, but it still highlights the challenges faced by Cross Country Healthcare. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -26.76% compared to the index's 2.44%, reinforcing concerns about its current valuation.