Is Custom Truck One Source, Inc. overvalued or undervalued?

As of 1 August 2024, the valuation grade for Custom Truck One Source, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company is currently considered overvalued. Key ratios include a Price to Book Value of 1.30, an EV to EBITDA of 9.42, and a ROCE of 3.55%.
In comparison to peers, Custom Truck One Source, Inc. has a significantly lower EV to EBITDA ratio than Herc Holdings, Inc. at 5.34 and H&E Equipment Services, Inc. at 7.74, both of which are classified as very expensive. The company's recent stock performance shows a 1-month return of 12.06%, outperforming the S&P 500's 3.83% return, but this does not sufficiently bolster its valuation given the overall financial metrics.