Is Matthews International Corp. overvalued or undervalued?

As of 21 November 2024, Matthews International Corp. has moved from an expensive to a risky valuation grade. The company appears to be overvalued given its current financial metrics and performance compared to peers. The P/E ratio is not applicable due to losses, while the Price to Book Value stands at 1.94, and the EV to EBITDA ratio is 12.26. Additionally, the Return on Capital Employed (ROCE) is a mere 3.34%, and the Return on Equity (ROE) is negative at -2.59%.
In comparison to its peers, Matthews International Corp. has a significantly lower valuation profile. For instance, TriMas Corp. is categorized as very expensive with a P/E ratio of 40.97, while Daktronics, Inc. is rated fair with a P/E of 23.31. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -22.76% compared to the S&P 500's 2.44%. Overall, these factors indicate that Matthews International Corp. is overvalued in the current market context.