Is Enviri Corp. overvalued or undervalued?

As of 2 August 2022, the valuation grade for Enviri Corp. moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued based on its current metrics, particularly with a Price to Book Value of 2.35, an EV to EBITDA of 9.37, and a ROCE of only 4.20%. In comparison to peers, Clean Harbors, Inc. has a fair valuation with a P/E ratio of 34.32, while Stericycle, Inc. is rated very attractive with an EV to EBITDA of 17.62, highlighting Enviri's relative weakness.
Despite the company's strong recent performance, with a year-to-date return of 61.95% compared to the S&P 500's 12.22%, the overall financial ratios suggest that Enviri Corp. is not positioned favorably against its peers, reinforcing the notion of overvaluation.