Is Lumen Technologies, Inc. (Louisiana) overvalued or undervalued?

As of 7 February 2023, Lumen Technologies, Inc. has moved from a valuation grade of very attractive to risky, indicating a significant downgrade in its investment appeal. The company is currently considered overvalued, particularly given its troubling financial metrics. The price-to-book value stands at 13.99, while the EV to EBITDA ratio is 5.84, and the return on equity (ROE) is a staggering -176.47%, highlighting severe profitability issues.
In comparison to its peers, Lumen Technologies shows a stark contrast with IDT Corp., which has a P/E ratio of 18.33 and an EV to EBITDA of 12.45, reflecting a more favorable valuation. Other peers such as Liberty Latin America Ltd. and Altice USA, Inc. also exhibit risky valuations but with better metrics than Lumen. The company's recent stock performance, which has seen a 296.26% return over the past year compared to the S&P 500's 10.26%, may suggest speculative interest, yet the underlying financial health raises concerns about sustainability.