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 shift towards a more cautious outlook. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 0.69 and an EV to EBITDA ratio of 12.95, which suggests that investors are paying a premium relative to the company's earnings before interest, taxes, depreciation, and amortization. Additionally, the negative ROCE of -0.92% and ROE of -2.24% further highlight the company's struggles in generating returns for shareholders.
When compared to peers, Enovis Corp. has a significantly lower EV to EBITDA ratio than Zurn Elkay Water Solutions Corp. at 22.5876 and Watts Water Technologies, Inc. at 19.0673, both of which are performing better in terms of valuation. The stock's performance has been underwhelming, with a year-to-date return of -24.41%, contrasting sharply with the S&P 500's return of 12.22% during the same period, reinforcing the notion that Enovis Corp. is not only overvalued but also struggling relative to broader market trends.