Is E2open Parent Holdings, Inc. overvalued or undervalued?

As of 12 January 2022, the valuation grade for E2open Parent Holdings, Inc. moved from does not qualify to risky, indicating increased concerns regarding its financial health. 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 peers. Additionally, the negative ROE of -13.63% and ROCE of -0.87% further highlight the company's struggles in generating returns.
In comparison to its peers, E2open's EV to EBITDA of 11.45 is significantly lower than that of Clear Secure, Inc. at 22.81 and Sapiens International Corp. NV at 23.34, both of which are considered fairly valued or attractive. Furthermore, E2open's stock has underperformed against the S&P 500 over multiple periods, particularly with a 1Y return of -18.72% compared to the S&P 500's 17.14%, reinforcing the notion that the stock is not a favorable investment at this time.