Is NCR Voyix Corp. overvalued or undervalued?

As of 9 November 2023, NCR Voyix Corp. has moved from a fair to a risky valuation grade. The company appears to be overvalued based on its current financial metrics. The P/E ratio stands at an exceptionally high 313, significantly above the industry average, while the EV to EBITDA ratio is 5.06, indicating a premium valuation compared to peers. Additionally, the PEG ratio of 3.07 suggests that the stock is priced for growth that may not materialize, given its low ROE of 0.44% and ROCE of 8.05%.
In comparison to its peers, NCR Voyix Corp. has a P/E ratio of 326.20 and an EV to EBITDA of 5.22, both of which are higher than the industry benchmarks. The company’s performance has lagged behind the S&P 500, with a year-to-date return of -16.47% compared to the index's 2.44%. Overall, the combination of high valuation ratios and poor relative performance suggests that NCR Voyix Corp. is overvalued in the current market environment.