Is Nerdy, Inc. overvalued or undervalued?

As of 28 February 2023, the valuation grade for Nerdy, Inc. changed from expensive to risky, indicating a shift in market perception. The company appears to be overvalued given its negative financial metrics, including a price-to-book value of 9.54 and an EV to EBITDA ratio of -4.28. Additionally, the return on equity is significantly negative at -207.40%, further supporting the notion of overvaluation.
In comparison to its peers, Nerdy, Inc. has a less favorable EV to EBITDA ratio than Ribbon Communications, Inc. at 11.3776 and Riskified Ltd. at -14.8926, both of which are also classified as risky. Despite a strong one-year stock return of 28.3%, which outperformed the S&P 500's 17.14%, the overall financial indicators suggest that the stock is not justified at its current price level.