Is E2open Parent Holdings, Inc. overvalued or undervalued?

As of 12 January 2022, the valuation grade for E2open Parent Holdings, Inc. has moved from does not qualify to risky, indicating a more cautious outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.32 and an EV to EBITDA ratio of 11.45, which suggests a premium compared to its financial performance. Additionally, the company has a negative ROE of -13.63% and a ROCE of -0.87%, further highlighting its struggles in generating returns.
In comparison to peers, E2open's P/E ratio is notably negative at -9.63, while Corsair Gaming, Inc. has a similarly risky valuation with a P/E of -10.28. The EV to EBITDA ratio for Corsair is significantly higher at 98.11, indicating that E2open may be overvalued relative to its peers despite both being categorized as risky. Recent stock performance shows E2open's 1-month return of 26.07%, outperforming the S&P 500's 3.83%, but its longer-term performance remains concerning, with a 1-year return of -26.36%.