Is Edgio, Inc. overvalued or undervalued?

As of 17 July 2019, the valuation grade for Edgio, Inc. moved from expensive to risky, indicating a significant downgrade in perceived value. Based on the available metrics, Edgio appears to be overvalued, particularly given its P/E ratio of 0.00, EV to EBITDA of -1.59, and ROE of -79.41%. These ratios suggest that the company is struggling to generate profits relative to its valuation, especially when compared to peers like Sharecare, Inc. with a P/E of -5.08 and Nextdoor Holdings, Inc. with a P/E of -12.10, both of which also reflect challenging financial conditions.
The lack of positive returns and the absence of meaningful price data further reinforce the notion that Edgio is not positioned favorably in the market. While specific return comparisons against the S&P 500 are not available, the overall context suggests that Edgio is likely underperforming relative to broader market benchmarks.