Is Frontier Communications Parent, Inc. overvalued or undervalued?

As of 2 August 2024, the valuation grade for Frontier Communications Parent, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current valuation metrics, particularly with a Price to Book Value of 1.86 and an EV to EBITDA ratio of 9.37, which are relatively high compared to its peers. Additionally, the ROE stands at -5.35%, reflecting ongoing losses and a lack of profitability.
In comparison to its peers, Lumen Technologies, Inc. has a more favorable EV to EBITDA of 6.67, while Cogent Communications Holdings, Inc. shows a significantly higher ratio at 23.20, indicating varying levels of valuation among competitors. The stock has underperformed against the S&P 500 over the past year, returning 5.6% compared to the index's 17.14%, reinforcing the notion that Frontier Communications may not be a compelling investment at its current price.