Is OrthoPediatrics Corp. overvalued or undervalued?

As of 6 November 2023, OrthoPediatrics Corp. has moved from a fair to a risky valuation grade. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 1.51, an EV to EBIT of -17.60, and an EV to Sales ratio of 2.55. Comparatively, peers such as Avanos Medical, Inc. have a positive P/E ratio of 9.80, while SI-BONE, Inc. shows a more concerning EV to EBITDA of -25.89, indicating that OrthoPediatrics is not the most attractive option in its sector.
The company's stock has underperformed relative to the S&P 500, with a year-to-date return of -13.24% compared to the index's 12.22%. Over the past year, the stock has declined by 33.10%, while the S&P 500 has gained 17.14%, reinforcing the notion that OrthoPediatrics is struggling in the current market environment.