Is INNOVATE Corp. overvalued or undervalued?

As of 5 November 2019, the valuation grade for INNOVATE Corp. has moved from attractive to risky, indicating a significant deterioration in its investment appeal. The company appears to be overvalued given its negative price-to-book value of -0.45 and a high EV to EBITDA ratio of 10.57, which suggests that investors are paying a premium relative to earnings before interest, taxes, depreciation, and amortization. Additionally, the company’s return on capital employed (ROCE) stands at 8.02%, which is relatively low compared to industry expectations.
In comparison to its peers, INNOVATE Corp. shows a stark contrast; for instance, Bowman Consulting Group Ltd. has a much higher P/E ratio of 81.27, indicating a more favorable valuation, while Matrix Service Co. is also categorized as risky with a P/E of -19.31. The company's recent stock performance has been underwhelming, with a year-to-date return of -5.06% compared to the S&P 500's 12.22%, and a staggering decline of -81.15% over the past five years, further reinforcing the notion of overvaluation.