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 shift in perception regarding its financial health. The company appears to be overvalued based on its current metrics, particularly given its negative P/E ratio and ROE of -1.10%. Key ratios include a Price to Book Value of 1.88, an EV to Sales ratio of 1.25, and a troubling EV to EBITDA of -64.45, which suggests significant operational challenges.
In comparison with peers, Marcus & Millichap's valuation is starkly lower than that of Jones Lang LaSalle, Inc., which has a P/E of 25.21, and Howard Hughes Holdings, Inc., with a P/E of 18.48. This highlights the company's relative underperformance within the industry. Additionally, over the past year, Marcus & Millichap has returned -18.70%, significantly lagging behind the S&P 500's return of 17.14%, reinforcing the notion that the stock may not be a favorable investment at this time.