Is Expensify, Inc. overvalued or undervalued?

As of 30 March 2022, the valuation grade for Expensify, Inc. has moved from very expensive to risky, indicating a shift in investor sentiment. The company is currently considered overvalued given its negative P/E ratio and poor returns on capital, with a ROCE of -0.91% and ROE of -7.01%. The EV to EBITDA ratio stands at 17.74, which is relatively high compared to peers, suggesting that the stock may not be justified at its current price of $2.32.
In comparison to its peers, Expensify's valuation metrics appear concerning. For instance, Red Violet, Inc. has a P/E of 77.67, while Priority Technology Holdings, Inc. shows a more favorable EV to EBITDA of 7.73. The stock has performed well recently, with a 1-year return of 61.11%, significantly outpacing the S&P 500's 10.26% return, but this does not necessarily reflect its fundamental valuation. Overall, Expensify seems overvalued based on its current financial ratios and peer comparisons.