Is Magnera Corp. overvalued or undervalued?

As of 3 May 2022, the valuation grade for Magnera Corp. has moved from expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued, particularly given its P/E ratio of -8.34, which is significantly below the industry average, and an EV to EBITDA ratio of 8.76, which is also concerning. Additionally, the absence of a PEG ratio suggests a lack of growth potential, further supporting the notion of overvaluation.
In comparison to its peers, Magnera Corp. is not performing favorably; for instance, its P/E ratio is notably lower than that of comparable companies in the garments and apparel sector. The company's recent stock performance has been dismal, with a year-to-date return of -36.98% compared to a positive 12.22% return for the S&P 500, and a staggering -79.03% return over three years against the S&P's 70.41%. This stark contrast reinforces the conclusion that Magnera Corp. is currently overvalued.