Is Grab Holdings Ltd. (Singapore) overvalued or undervalued?

As of 3 March 2022, Grab Holdings Ltd. has moved from a grade of "does not qualify" to "risky," indicating a significant shift in its valuation outlook. The company is currently considered overvalued, primarily due to its exceptionally high P/E ratio of 403, which starkly contrasts with peers like Lyft, Inc. at 62.13 and Performance Food Group Co. at 30.71. Additionally, Grab's EV to EBITDA stands at 113.65, further underscoring its inflated valuation compared to the industry.
The company's financial performance metrics reveal troubling signs, with a negative ROCE of -0.92% and a low ROE of 0.81%. The PEG ratio of 3.21 also suggests that the stock is priced excessively relative to its growth prospects. While Grab has outperformed the S&P 500 over the past year with a return of 28.81% compared to 10.26%, the overall valuation metrics indicate that it is not justified at its current price of 4.56.