Is Maui Land & Pineapple Co., Inc. overvalued or undervalued?

As of 18 August 2023, the valuation grade for Maui Land & Pineapple Co., Inc. has moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued given its current financial metrics, including a Price to Book Value of 12.46 and negative ratios for both EV to EBIT and EV to EBITDA at -41.84 and -46.24, respectively. Additionally, the company has a Return on Capital Employed (ROCE) of -44.78% and a Return on Equity (ROE) of -54.86%, further highlighting its financial struggles.
In comparison to its peers, Maui Land & Pineapple Co., Inc. shows a significantly lower EV to EBITDA ratio than FRP Holdings, Inc., which stands at 16.37, indicating a much less favorable valuation. Other risky peers like Tejon Ranch Co. and Belpointe PREP LLC also reflect negative valuations, with EV to EBITDA ratios of -169.64 and -21.45, respectively. Despite a strong short-term performance with a 1-week return of 6.25% compared to the S&P 500's 1.05%, the year-to-date return of -9.46% against the S&P 500's 12.22% suggests that the stock is struggling to maintain momentum in the longer term.