Is Opendoor Technologies, Inc. overvalued or undervalued?

As of 9 November 2020, the valuation grade for Opendoor Technologies, Inc. moved from does not qualify to risky. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.77, an EV to EBIT of 0.74, and an EV to EBITDA of 0.91, which indicate significant financial distress and inefficiency in generating earnings relative to its enterprise value.
In comparison to its peers, Opendoor's valuation appears particularly unfavorable. For example, Hilton Grand Vacations, Inc. has a P/E ratio of 28.88 and an EV to EBITDA of 11.33, while Howard Hughes Holdings, Inc. shows a P/E of 12.24 and an EV to EBITDA of 4.03, both reflecting more robust financial health. Furthermore, Opendoor's recent stock performance has been poor, with a year-to-date return of -66.88%, starkly contrasting with the S&P 500's 2.44% gain during the same period, reinforcing the notion that the company is overvalued in its current state.