Is Performant Financial Corp. overvalued or undervalued?

As of 1 March 2017, the valuation grade for Performant Financial Corp. has moved from attractive to risky, indicating a significant deterioration in its financial health. The company is currently overvalued, as evidenced by its negative P/E ratio and troubling financial metrics. The Price to Book Value stands at 3.12, while the EV to EBITDA is an alarming 151.64, reflecting inefficiencies in generating earnings relative to its enterprise value. Additionally, the ROCE and ROE are both negative at -7.11% and -7.63%, respectively, further highlighting the company's struggles.
In comparison to its peers, Performant Financial Corp. shows a stark contrast with Willdan Group, Inc., which has a P/E of 34.31, and TaskUs, Inc., which is considered very attractive with an EV to EBITDA of 9.57. The disparity in valuation metrics suggests that Performant is not only underperforming but also lacks the financial stability seen in its competitors. Despite recent stock performance showing a 29.60% return over the past year, which outpaces the S&P 500's 10.26%, the underlying fundamentals indicate that the stock is overvalued and poses significant risks for investors.