Is loanDepot, Inc. overvalued or undervalued?

As of 9 August 2022, the valuation grade for loanDepot, Inc. has moved from very attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.67 and negative EV to EBIT and EV to EBITDA ratios of -0.08 and -0.06, respectively. Additionally, the company's ROCE and ROE are concerning at -66.37% and -32.87%, highlighting inefficiencies in generating returns.
In comparison to its peers, loanDepot's valuation ratios are less favorable; for instance, Guild Holdings Co. has a P/E ratio of 34.06, while Ocwen Financial Corp. boasts a much lower EV to EBITDA of 0.22, both indicating stronger financial health. Despite the company's impressive YTD return of 101.47%, which significantly outperformed the S&P 500's 12.22%, the underlying financial metrics suggest that loanDepot is not a sound investment at its current valuation.