Is Leafly Holdings, Inc. overvalued or undervalued?

As of 10 May 2021, Leafly Holdings, Inc. has moved from a grade of "does not qualify" to "risky," indicating a significant shift in its valuation outlook. The company is currently considered overvalued, primarily due to its negative financial metrics. Key ratios include a Price to Book Value of -0.03, an EV to EBITDA of -15.84, and a ROCE of -262.90%, all of which highlight the company's struggles to generate positive returns.
In comparison to its peers, Leafly's valuation appears unfavorable. For instance, CompoSecure, Inc. has a P/E ratio of 18.16 and an EV to EBITDA of 15.52, while Deluxe Corp. boasts a very attractive valuation with an EV to EBITDA of 5.47. These comparisons underscore Leafly's challenging position in the market. Additionally, the company's stock has seen a dramatic decline, with a YTD return of -81.27%, contrasting sharply with the S&P 500's positive return of 2.44%.