Is Hall of Fame Resort & Entertainment Co. overvalued or undervalued?

As of 14 November 2022, Hall of Fame Resort & Entertainment Co. has moved from an attractive to a risky valuation grade. The company appears to be overvalued given its significant financial challenges, including a Price to Book Value of just 0.10 and an EV to EBITDA ratio of -18.27, indicating substantial operational losses. Additionally, the company has a negative ROCE of -10.13% and an even more concerning ROE of -89.24%, reflecting inefficiencies in generating returns for shareholders.
In comparison to its peers, Hall of Fame Resort & Entertainment Co. stands out unfavorably; for instance, Marcus Corp. has a P/E ratio of 56.70 and an EV to EBITDA of 5.86, while CuriosityStream, Inc. shows a P/E of -32.36 with an EV to EBITDA of 30.14. These comparisons highlight the company's struggles relative to its industry. Furthermore, the company's stock has underperformed significantly against the S&P 500, with a year-to-date decline of -32.83% compared to a modest gain of 2.44% for the index. Overall, Hall of Fame Resort & Entertainment Co. is deemed overvalued in its current state.