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 deterioration in its valuation outlook. The company appears to be overvalued based on its current metrics, particularly with a Price to Book Value of 0.34, an EV to EBITDA of 5.18, and an EV to Sales ratio of 0.38. In comparison to peers, Ethan Allen Interiors, Inc. has a P/E ratio of 28.41 and an EV to EBITDA of 17.96, while Arhaus, Inc. shows a P/E of 22.58 and an EV to EBITDA of 8.19, highlighting that Lifetime Brands is significantly lagging behind its competitors.
The company's recent stock performance further supports this valuation assessment, as it has underperformed against the S&P 500 across multiple periods, including a year-to-date return of -33.08% compared to the S&P 500's 12.22%. This consistent underperformance, combined with the negative return on equity of -5.94%, suggests that investors may be overestimating the company's value relative to its peers and market conditions.