Is Marcus & Millichap, Inc. overvalued or undervalued?

As of 3 November 2023, the valuation grade for Marcus & Millichap, Inc. has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued given its negative earnings and key ratios such as a Price to Book Value of 1.88 and an EV to Sales ratio of 1.25, which do not support a favorable valuation. Additionally, the company's ROCE stands at -8.55% and ROE at -1.10%, further highlighting its financial struggles.
In comparison to peers, Marcus & Millichap's valuation metrics are concerning; Forestar Group, Inc. is rated attractive with a P/E of 5.68 and an EV to EBITDA of 3.84, while Kennedy-Wilson Holdings, Inc. is also rated risky with a P/E of -9.21. The stark contrast in valuation suggests that Marcus & Millichap is not only underperforming but also lacks the financial stability seen in its peers. Despite a recent positive stock return of 11.21% over the past month, the overall trend shows a year-to-date decline of 18.30%, reinforcing the notion that the stock is overvalued relative to its current financial performance and market conditions.