Is Elastic NV overvalued or undervalued?

As of 27 February 2025, the valuation grade for Elastic NV has moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued, particularly given its significant negative valuation ratios, including an EV to EBITDA of -196.67 and an EV to EBIT of -151.83. Additionally, the Price to Book Value stands at 9.73, which is considerably high compared to industry norms.
In comparison to its peers, Elastic NV's valuation metrics are concerning; for instance, Jack Henry & Associates, Inc. has a P/E ratio of 36.61, while Paylocity Holding Corp. shows a fair valuation with a P/E of 40.42. Furthermore, the company's recent stock performance has been underwhelming, with a year-to-date return of -9.53%, contrasting sharply with the S&P 500's 12.22% return over the same period, reinforcing the notion that Elastic NV is struggling relative to broader market performance.