Is Fastly, Inc. overvalued or undervalued?

As of 7 November 2019, Fastly, Inc. has moved from a grade that does not qualify to a risky valuation. The company is currently considered overvalued given its negative financial metrics, including a P/E ratio that is not applicable due to losses, an EV to EBITDA of -22.64, and a ROE of -14.76%. These figures indicate significant operational challenges and a lack of profitability.
In comparison to its peers, Fastly's valuation ratios are concerning. For instance, Box, Inc., which is rated attractive, has a P/E ratio of 22.48 and an EV to EBITDA of 55.91, showcasing a stark contrast in performance. Additionally, Squarespace, Inc. and Workiva, Inc. are both rated risky, with EV to EBITDA ratios of 39.31 and -52.68, respectively, further emphasizing the struggles within the sector. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -28.39% compared to the index's 2.44%, reinforcing the notion that Fastly is not a favorable investment at this time.