Is Nexa Resources SA overvalued or undervalued?

As of 27 April 2023, the valuation grade for Nexa Resources SA has moved from very attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.74, an EV to EBITDA of 3.40, and an EV to Sales ratio of 0.74, which suggest that despite low valuations relative to sales and earnings before interest, taxes, depreciation, and amortization, the overall financial health is concerning, especially with a negative ROE of -16.76%.
In comparison to its peers, U.S. Silica Holdings, Inc. has a fair valuation with a P/E ratio of 12.49 and an EV to EBITDA of 5.30, while Ferroglobe PLC is also classified as risky with a P/E of -17.39 and an EV to EBITDA of 19.34. This highlights that Nexa Resources SA is lagging behind its competitors in terms of valuation metrics. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -44.32% compared to the index's 12.22%, reinforcing the notion of overvaluation amidst a challenging market environment.