Is Hydrofarm Holdings Group, Inc. overvalued or undervalued?

As of 10 May 2022, the valuation grade for Hydrofarm Holdings Group, Inc. moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company is currently overvalued, as evidenced by its Price to Book Value of 0.08, EV to EBIT of -3.18, and EV to EBITDA of -12.66. In comparison to peers, Douglas Dynamics, Inc. shows a significantly higher P/E ratio of 11.82, while Wabash National Corp. has a risky EV to EBITDA of -19.47, highlighting the challenges Hydrofarm faces within its industry.
The stock has underperformed relative to the S&P 500, with a year-to-date return of -44.14% compared to the index's 12.22%. This stark contrast further supports the conclusion that Hydrofarm Holdings is currently overvalued in the market.