Is Fast Acquisition Corp. II overvalued or undervalued?

As of 9 February 2024, the valuation grade for Fast Acquisition Corp. II has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company is currently considered overvalued, particularly given its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of -20.92, an EV to EBIT of -18.00, and an EV to EBITDA of -18.01, all of which highlight significant financial distress.
In comparison to its peers, Fast Acquisition Corp. II's valuation appears unfavorable. For instance, LendingTree, Inc. has a P/E ratio of -15.53 and an EV to EBITDA of 12.37, while Guild Holdings Co. is considered attractive with a P/E of 17.05 and an EV to EBITDA of 3.65. The stark contrast in these ratios underscores the challenges faced by Fast Acquisition Corp. II. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -34.45% compared to the index's 2.44%, reinforcing the notion of overvaluation.