Is Harte-Hanks, Inc. overvalued or undervalued?

As of 14 March 2024, the valuation grade for Harte-Hanks, Inc. has moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued with a P/E ratio of 28.55, significantly higher than its own EV/EBITDA ratio of 4.24 and the industry average, suggesting that the stock may not justify its current price based on earnings potential. Additionally, the PEG ratio stands at 0.04, which typically indicates that the stock is overvalued relative to its growth rate.
In comparison to its peers, Harte-Hanks, Inc. has a higher P/E ratio than FONAR Corp., which is fairly valued at 8.99, and significantly higher than Bakkt Holdings, Inc. and Research Solutions, Inc., both of which are rated as risky. The recent stock performance shows that Harte-Hanks has underperformed the S&P 500 across multiple periods, with a year-to-date return of -28.45% compared to the S&P 500's 12.22%. This further reinforces the notion that the stock is overvalued given its poor performance relative to the broader market.