Is MSP Recovery, Inc. overvalued or undervalued?

As of 9 February 2022, the valuation grade for MSP Recovery, Inc. has moved from does not qualify to risky, indicating a significant downgrade in its perceived investment quality. Based on the analysis, the company appears to be overvalued given its negative financial metrics, including a P/E ratio of 0, a Price to Book Value of -0.19, and an EV to EBITDA of -22.79. These figures suggest that the company's financial health is concerning, particularly with a ROCE of -68.54%.
In comparison to its peers, MSP Recovery, Inc. stands out unfavorably against Root, Inc., which has a P/E of 35.65 and an EV to EBITDA of 122.29, and Crawford & Co., with a P/E of 16.08 and an EV to EBITDA of 3.81. The stark contrast in these ratios highlights the significant challenges MSP Recovery faces in the market. Additionally, the company's stock has underperformed dramatically, with a year-to-date return of -45.37% compared to a modest 2.44% return for the S&P 500, reinforcing the notion that MSP Recovery, Inc. is overvalued at its current price of 1.24.