Is FG Financial Group, Inc. overvalued or undervalued?

As of 9 November 2023, FG Financial Group, Inc. has moved from a very attractive to a risky valuation grade. The company is currently considered overvalued, particularly given its P/E ratio is not applicable due to losses, and it has a Price to Book Value of 0.33, an EV to EBIT of 18.18, and an EV to EBITDA also at 18.18. The negative return on equity (ROE) stands at -41.56%, indicating significant financial distress.
In comparison to its peers, FG Financial Group's valuation metrics are concerning. For instance, Lemonade, Inc. has a P/E of -12.77 and an EV to EBITDA of 114.16, while HCI Group, Inc. shows a fair valuation with a P/E of 13.47 and an EV to EBITDA of 149.79. The stark contrast in these ratios suggests that FG Financial Group is lagging behind its competitors. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -21.15% compared to the index's 2.44%.