Is ON24, Inc. overvalued or undervalued?

As of 9 November 2021, the valuation grade for ON24, Inc. moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 1.53 and an EV to Sales ratio of 0.38, which suggest that investors are paying a premium despite the company's losses. Additionally, the ROE stands at -24.72%, further highlighting the challenges the company faces.
In comparison to its peers, ON24, Inc. has a P/E ratio of -7.0057, while Domo, Inc. shows a P/E of -9.3734, and Inspired Entertainment, Inc. has a more favorable P/E of 3.9936. This indicates that ON24 is underperforming relative to some of its competitors. Furthermore, the company's stock has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -9.44% compared to the S&P 500's 12.22%, reinforcing the notion that the stock may not be a sound investment at its current valuation.