Is Kirkland's, Inc. overvalued or undervalued?

As of 30 August 2022, Kirkland's, Inc. moved from an expensive to a risky valuation grade, indicating a shift in perception regarding its financial health. The company appears to be overvalued, given its negative price-to-book value of -1.56 and an EV to EBITDA ratio of -33.34, which suggests significant operational challenges. Additionally, the EV to sales ratio stands at 0.28, reflecting low revenue generation relative to its enterprise value.
In comparison to peers, Kirkland's valuation metrics are concerning; for instance, Barnes & Noble Education, Inc. has a P/E ratio of -55.1587, while Tandy Leather Factory, Inc. is considered very attractive with a P/E of 2.2641. The stark contrast in these ratios highlights Kirkland's struggles within the retailing sector. Over the past year, Kirkland's stock has underperformed, returning -1.57% compared to the S&P 500's 17.14%, reinforcing the notion that the company is currently overvalued.