Is Lanvin Group Holdings Ltd. overvalued or undervalued?

As of 9 February 2023, the valuation grade for Lanvin Group Holdings Ltd. has moved from does not qualify to risky. The company is currently considered overvalued given its significant negative financial ratios, including a Price to Book Value of -73.78 and an EV to EBITDA of -5.21. Additionally, the Return on Capital Employed (ROCE) stands at a concerning -75.88%, indicating severe operational inefficiencies.
In comparison to its peers, Lanvin's valuation metrics are starkly unfavorable. For instance, Hanesbrands, Inc. has a P/E ratio of 8.93 and an EV to EBITDA of 7.22, while G-III Apparel Group Ltd. shows a more attractive P/E of 4.74 and an EV to EBITDA of 2.37. These comparisons highlight Lanvin's struggles in generating positive earnings and maintaining a sustainable business model. Despite a recent stock return of 5.39% over the past week, the overall performance remains lackluster compared to broader market indices, reinforcing the view that Lanvin Group Holdings Ltd. is overvalued.