Is MultiPlan Corp. overvalued or undervalued?

As of 28 February 2023, MultiPlan Corp. has moved from a valuation grade of very attractive to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued, particularly given its staggering Price to Book Value of 95.80 and an EV to EBIT ratio of 76.24, which suggests that investors are paying a premium for its earnings potential that is not being realized. Additionally, the company's ROE is alarmingly low at -896.41%, reflecting severe inefficiencies in generating returns for shareholders.
In comparison to its peers, MultiPlan Corp. stands out with a P/E ratio of -10.87, while AvePoint, Inc. has a P/E of 265.46 and Sterling Check Corp. shows a P/E of 48.01. Global Blue Group Holding AG, which is rated very attractive, has a more reasonable P/E of 30.28. These comparisons highlight the challenges MultiPlan faces in justifying its current valuation. Despite a strong recent performance with a year-to-date return of 180.72% compared to the S&P 500's 2.44%, the underlying fundamentals suggest that the stock is overvalued at its current price of 41.49.