Is Grove Collaborative Holdings, Inc. overvalued or undervalued?

As of 11 August 2022, the valuation grade for Grove Collaborative Holdings, Inc. has moved from does not qualify to risky. The company is currently considered overvalued. Key ratios indicate significant financial distress, with a Price to Book Value of 4.05, an EV to EBIT of -2.50, and an EV to EBITDA of -4.16, all reflecting poor performance and negative earnings.
In comparison to its peers, Grove's performance is notably weaker; for instance, Olaplex Holdings, Inc. has a P/E ratio of 76.70 and an EV to EBITDA of 9.24, while Nu Skin Enterprises, Inc. shows a P/E of 3.95 and an EV to EBITDA of 6.26. Grove's negative return trends further emphasize its overvaluation, with a year-to-date decline of 23.02% against a 2.44% increase in the S&P 500.