Is Enovis Corp. overvalued or undervalued?

As of 4 May 2023, the valuation grade for Enovis Corp. has moved from expensive to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued, particularly given its negative P/E ratio and poor returns on capital. Key ratios include a Price to Book Value of 0.69, an EV to EBITDA of 12.95, and a troubling ROCE of -0.92%.
In comparison to its peers, Enovis Corp. shows a P/E ratio of -30.07, while John Bean Technologies Corp. has a P/E of -1053.09, and Gates Industrial Corp. Plc stands at 22.68, highlighting the disparity in valuation among similar companies. Furthermore, Enovis has underperformed against the S&P 500, with a year-to-date return of -31.72% compared to the index's 2.44%, reinforcing the notion that the stock is overvalued in its current state.