Is Funko, Inc. overvalued or undervalued?

As of 1 March 2023, the valuation grade for Funko, Inc. has moved from expensive to risky, indicating a deterioration in its valuation outlook. Based on the available metrics, Funko appears to be overvalued, particularly given its negative return on equity of -9.00% and a high EV to EBIT ratio of 89.85. Additionally, its price to book value stands at 1.24, which suggests that the market is pricing the company at a premium relative to its net assets.
In comparison to its peers, Funko's EV to EBITDA ratio of 6.80 is lower than that of Malibu Boats, Inc. at 10.26, yet it remains significantly higher than Johnson Outdoors, Inc. which has a negative EV to EBITDA ratio. The company's stock has underperformed against the S&P 500, with a year-to-date return of -74.16% compared to the index's 12.22%, reinforcing the notion that Funko is currently overvalued.