Is INNOVATE Corp. overvalued or undervalued?

As of 5 November 2019, the valuation grade for INNOVATE Corp. has moved from very attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued, particularly given its P/E ratio is not applicable due to losses, while its Price to Book Value stands at -0.45. Additionally, the EV to EBITDA ratio is 10.57, which is relatively high compared to its peers.
In terms of peer comparison, Argan, Inc. has a fair valuation with a P/E ratio of 28.81 and an EV to EBITDA of 21.40, while Great Lakes Dredge & Dock Corp. is also fairly valued with an EV to EBITDA of 7.49. INNOVATE Corp.'s performance has been poor, with a 1-year stock return of -19.89%, significantly underperforming the S&P 500's return of 10.26% over the same period. This further reinforces the conclusion that INNOVATE Corp. is overvalued in the current market environment.