Is Liberty Latin America Ltd. overvalued or undervalued?

As of 22 February 2024, the valuation grade for Liberty Latin America Ltd. has moved from fair to risky, indicating a shift in the company's perceived value. The company appears to be overvalued given its current financial metrics, including a Price to Book Value of 1.01, an EV to EBIT of 9.92, and an EV to EBITDA of 3.72. In comparison to peers, Frontier Communications Parent, Inc. has an EV to EBITDA of 9.63, while Lumen Technologies, Inc. shows a more favorable EV to EBITDA of 6.67, suggesting that Liberty Latin America Ltd. is not competitively positioned within its industry.
In terms of stock performance, Liberty Latin America Ltd. has seen a year-to-date return of 30.60%, significantly outperforming the S&P 500's 12.22% during the same period. However, over the past year, the company has underperformed with a return of -13.66% compared to the S&P 500's 17.14%. This mixed performance further supports the conclusion that the stock is overvalued relative to its peers and overall market trends.