Is Inspired Entertainment, Inc. overvalued or undervalued?

As of 9 February 2017, the valuation grade for Inspired Entertainment, Inc. moved from does not qualify to risky, indicating a shift in perception regarding its financial stability. The company appears to be overvalued, particularly given its P/E ratio of 3, which is significantly lower than the industry average, and an EV to EBITDA ratio of 6.04 that suggests a higher valuation compared to peers. Additionally, the negative price-to-book value of -99.02 raises further concerns about the company's asset valuation.
In comparison to its peers, Inspired Entertainment, Inc. has a P/E ratio of 3.99, while Domo, Inc. shows a much higher negative P/E of -9.37, and American Software, Inc. is considered very expensive with a P/E of 167.83. The company's recent stock performance has been mixed, with a 1-year return of -2.60% compared to the S&P 500's return of 17.14%, indicating underperformance in the market. Overall, these metrics suggest that Inspired Entertainment, Inc. is overvalued relative to its financial health and market performance.