Is Interactive Strength, Inc. overvalued or undervalued?

As of 20 May 2024, the valuation grade for Interactive Strength, Inc. has moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company is assessed as overvalued given its current metrics, particularly with a price-to-book value of 0.64 and an EV to EBITDA ratio of -0.84, which highlight its struggles in generating positive earnings. Additionally, the return on capital employed (ROCE) and return on equity (ROE) are alarmingly negative at -116.38% and -255.19%, respectively.
In comparison to its peers, Interactive Strength, Inc. shows a stark contrast with Barnes & Noble Education, Inc., which has a P/E ratio of -72.35, and Kirkland's, Inc., with an EV to EBITDA of -15.02. These ratios suggest that while both companies are also in risky territory, they are performing better relative to Interactive Strength, Inc. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -77.37% compared to the index's 2.44%. Overall, the financial indicators and peer comparisons strongly suggest that Interactive Strength, Inc. is overvalued in the current market environment.