Is Lifetime Brands, Inc. overvalued or undervalued?

As of 3 November 2022, the valuation grade for Lifetime Brands, Inc. moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be undervalued, especially when considering its low Price to Book Value of 0.34 and an EV to Sales ratio of 0.38, which suggest that the market may be underestimating its potential. However, the negative P/E ratio reflects its loss-making status, which complicates the valuation narrative.
In comparison to its peers, Lifetime Brands' EV to EBITDA of 5.18 is lower than La-Z-Boy, Inc. at 4.68 and Ethan Allen Interiors, Inc. at 14.14, both of which are categorized as very attractive. Additionally, the company's ROE stands at -5.94%, further emphasizing the challenges it faces. Despite its recent stock performance lagging behind the S&P 500, particularly with a YTD return of -34.01% compared to the index's 2.44%, the significant dividend yield of 363.00% may provide some appeal to investors looking for income in a risky environment.