Is Olo, Inc. overvalued or undervalued?

As of 11 May 2021, the valuation grade for Olo, Inc. has moved from does not qualify to risky, indicating a significant downgrade in its perceived investment quality. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 2.15, an EV to EBIT of -61.14, and an EV to Sales ratio of 3.80, all of which suggest that the company is struggling financially and is not generating positive earnings.
In comparison to its peers, Olo, Inc. shows a stark contrast with Matterport, Inc. and WalkMe Ltd., which have EV to EBITDA ratios of -10.16 and -35.33, respectively, indicating that Olo is significantly lagging behind in terms of operational efficiency. Furthermore, while Olo has seen a remarkable 90.81% return over the past year, this is juxtaposed against a backdrop of overall financial instability, reinforcing the conclusion that the company is overvalued relative to its current performance and market conditions.