Is Mativ Holdings, Inc. overvalued or undervalued?

As of 22 February 2023, Mativ Holdings, Inc. has moved from a very attractive to a risky valuation grade, indicating a significant deterioration in its financial outlook. The company is currently deemed overvalued given its financial metrics, particularly with a P/E ratio that is not applicable due to losses, a Price to Book Value of 0.79, and an EV to EBITDA of 7.90. Additionally, the Return on Capital Employed (ROCE) stands at a low 2.14%, and the Return on Equity (ROE) is negative at -2.59%, further emphasizing the company's struggles.
In comparison to its peers, Mativ's valuation appears unfavorable; for instance, Hawkins, Inc. has a P/E of 33.59 and an EV to EBITDA of 18.73, while Westlake Chemical Partners LP boasts a much more attractive P/E of 2.42 and an EV to EBITDA of 2.49. The stark contrast in these ratios suggests that Mativ is not only underperforming but also overvalued relative to its industry peers. Recent stock performance has been dismal, with a year-to-date decline of 41.65%, significantly underperforming the S&P 500's 2.44% return, reinforcing the notion that Mativ Holdings, Inc. is currently overvalued.