Is Digital Brands Group, Inc. overvalued or undervalued?

As of 13 August 2021, the valuation grade for Digital Brands Group, Inc. moved from does not qualify to risky. The company appears to be overvalued given its significant negative financial metrics, including a Price to Book Value of 8.33, an EV to EBIT of -5.30, and an EV to EBITDA of -6.69. Compared to peers, Digital Brands Group's valuation ratios are concerning; for instance, Rocky Brands, Inc. has a fair P/E of 11.89, while Digital Brands shows a negative P/E of -3.43.
The company's stock has had a tumultuous performance, with a year-to-date return of 366.93%, significantly outpacing the S&P 500's 12.22%, but it has also suffered a staggering 65.95% decline over the past year. This volatility reinforces the notion that the stock is overvalued in light of its current financial standing and peer comparisons.