Is Fiscalnote Holdings, Inc. overvalued or undervalued?

As of 12 May 2025, the valuation grade for Fiscalnote Holdings, Inc. moved from fair to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 0.99 and an EV to Sales ratio of 1.51, which do not justify its current market price in the context of its negative earnings and returns. Additionally, the company has a troubling ROE of -31.00% and a ROCE of -14.02%, further highlighting its financial struggles.
In comparison to peers, Fiscalnote's EV to EBITDA ratio of -43.28 is significantly worse than that of Sharecare, Inc. at -9.7171, and its P/E ratio is also unfavorable compared to GoodRx Holdings, Inc. which has a P/E of 31.7612. The stark contrast in these ratios suggests that Fiscalnote is not only underperforming relative to its peers but is also facing substantial challenges that warrant a cautious investment stance. The company's stock has underperformed dramatically, with a year-to-date return of -64.72% compared to the S&P 500's gain of 12.22%, reinforcing the notion that it is overvalued in the current market environment.