Is Expensify, Inc. overvalued or undervalued?

As of 30 March 2022, the valuation grade for Expensify, Inc. moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued, given its negative P/E ratio and low returns on equity and capital employed, with a Price to Book Value of 1.60, an EV to EBITDA of 17.74, and an EV to Sales ratio of 0.97. In comparison, peers like Red Violet, Inc. have a very expensive P/E of 82.07, while Priority Technology Holdings, Inc. has a risky EV to EBITDA of 7.55, highlighting Expensify's relative underperformance.
Recent stock performance shows that Expensify has underperformed against the S&P 500, with a year-to-date return of -40.6% compared to the index's 12.22%. This trend reinforces the notion that Expensify is overvalued in the current market environment.