Is HWH International, Inc. overvalued or undervalued?

As of 31 March 2025, HWH International, Inc. has moved from a grade of does not qualify to risky, indicating a significant shift in its valuation outlook. The company appears to be overvalued, particularly when considering its P/E ratio of -31.281 and EV to EBITDA of -21.1797, both of which are concerning compared to the industry benchmarks. Additionally, the company has a PEG ratio of 0.0, suggesting that it may not be generating growth in line with its valuation.
In comparison to its peers, HWH International, Inc. stands out negatively; for instance, its P/E ratio is significantly lower than the industry average, which raises red flags about its earnings potential. The stock's recent performance has also been troubling, with a year-to-date return of -12.23%, while the S&P 500 has gained 12.22% during the same period, highlighting a stark underperformance. Overall, the combination of poor valuation ratios and disappointing stock performance suggests that HWH International, Inc. is overvalued in the current market context.