Is Peloton Interactive, Inc. overvalued or undervalued?

As of 26 August 2021, Peloton Interactive, Inc. moved from a fair to a risky valuation grade, indicating a significant deterioration in its market perception. The company is overvalued, as evidenced by its negative Price to Book Value of -5.92 and an EV to EBIT ratio of -96.87, which highlight severe financial challenges. Additionally, the EV to EBITDA ratio stands at 61.67, suggesting that the company's enterprise value is disproportionately high relative to its earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Peloton's valuation metrics are starkly unfavorable; for instance, Planet Fitness, Inc. has an EV to EBITDA of 20.70, while Stride, Inc. maintains a more reasonable EV to EBITDA of 14.10. The stark contrast in these ratios underscores Peloton's overvaluation. Despite a strong 1-year stock return of 79.01%, this is overshadowed by a significant decline over the past 5 years, where it has lost 91.16%, compared to the S&P 500's 96.61% gain, reinforcing the notion that Peloton is currently overvalued.