Is Innventure, Inc. overvalued or undervalued?

As of 10 February 2025, the valuation grade for Innventure, Inc. has moved from does not qualify to risky, indicating a significant downgrade in its investment attractiveness. The company appears to be overvalued, particularly given its P/E ratio of -2.1796 and EV to EBITDA of -2.9893, which are both concerning metrics compared to the industry averages.
In comparison to its peers, Innventure, Inc. shows a stark contrast, with its valuation ratios indicating a lack of profitability and growth potential. For instance, the PEG ratio is at 0.0, suggesting no expected growth, which is alarming for investors. Notably, while the stock has experienced a 38.22% return over the past month, it has significantly underperformed the S&P 500, which returned 2.33% during the same period, and has a troubling year-to-date return of -58.48% compared to the S&P 500's 12.22%. This further reinforces the view that Innventure, Inc. is overvalued in its current state.