Is Digital World Acquisition Corp. overvalued or undervalued?

As of 20 May 2024, the valuation grade for Digital World Acquisition Corp. has moved from does not qualify to risky, indicating increased concerns regarding its financial health. The company appears to be overvalued given its significant negative metrics, including a Price to Book Value of 5.16 and an EV to EBITDA ratio of -31.55. Additionally, the Return on Capital Employed (ROCE) stands at a troubling -88.71%, further highlighting the challenges the company faces.
In comparison to its peers, Digital World Acquisition Corp. has a P/E ratio of -35.57, while AssetMark Financial Holdings, Inc. is considered expensive with a P/E of 16.07, and Screaming Eagle Acquisition Corp. also carries a risky valuation with a P/E of -16.09. The company's stock has underperformed against the S&P 500, with a year-to-date return of -50.35% compared to the index's 12.22%, reinforcing the notion that it is currently overvalued.