Is ModivCare, Inc. overvalued or undervalued?

As of 25 February 2022, the valuation grade for ModivCare, Inc. changed from expensive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of -0.90 and an EV to EBIT ratio of 115.84, which suggests that the market is pricing the company excessively high relative to its earnings potential. Additionally, the EV to EBITDA ratio stands at 10.28, further reinforcing the notion of overvaluation.
In comparison to its peers, ModivCare, Inc. has a less favorable EV to EBITDA ratio than Seacor Marine Holdings, Inc., which has an EV to EBITDA of 27.0942, highlighting a stark contrast in valuation. The company's recent stock performance has been dismal, with a year-to-date return of -97.89% compared to the S&P 500's positive return of 12.22%, underscoring the challenges it faces in the market. Overall, ModivCare, Inc. is considered overvalued based on its current financial metrics and peer comparisons.