Is Katapult Holdings, Inc. overvalued or undervalued?

As of 9 November 2022, the valuation grade for Katapult Holdings, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, particularly given its negative price-to-book value of -0.83 and a price-to-earnings ratio that is not applicable due to losses. Additionally, its EV to EBITDA ratio stands at a low 0.18, which, while seemingly favorable, is overshadowed by the company's overall financial instability.
In comparison to its peers, Katapult's valuation metrics are concerning. For instance, PaySign, Inc. is categorized as very expensive with a P/E ratio of 45.55, while Gaia, Inc. is also risky with a P/E of -21.71. The stark contrast in these valuations highlights Katapult's precarious position within the industry. Furthermore, the company's stock has underperformed significantly against the S&P 500 over the past year, with a return of -54.19% compared to the index's 10.26%. This reinforces the notion that Katapult Holdings, Inc. is currently overvalued amidst its financial challenges.