Is Fastly, Inc. overvalued or undervalued?

As of 7 November 2019, the valuation grade for Fastly, Inc. changed from does not qualify to risky, indicating a more cautious outlook. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 1.16 and negative EV to EBIT and EV to EBITDA ratios of -8.00 and -22.64, respectively. Additionally, the Return on Capital Employed (ROCE) and Return on Equity (ROE) are both negative at -14.38% and -14.76%, highlighting ongoing financial struggles.
In comparison to peers, Fastly's valuation is notably weaker; for instance, Pegasystems, Inc. has a fair P/E ratio of 48.13, while Box, Inc. is attractive with a P/E of 21.43. Fastly's recent stock performance shows a 27.13% return over the past year, which outperformed the S&P 500's 17.14% return, but this is overshadowed by a significant decline of 89.32% over the last five years, suggesting long-term challenges.