Is Perrigo Co. Plc overvalued or undervalued?

As of 2 August 2024, the valuation grade for Perrigo Co. Plc has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued, particularly given its P/E ratio is not applicable due to losses, while its Price to Book Value stands at 0.82, suggesting it is trading below its book value, but this is overshadowed by a high EV to EBITDA of 9.71 and a low ROE of -0.63%.
In comparison to its peers, Perrigo's valuation metrics are concerning; for instance, Exelixis, Inc. has a more favorable P/E of 15.81 and an EV to EBITDA of 11.97, while Alkermes Plc also shows stronger fundamentals with a P/E of 13.77 and an EV to EBITDA of 9.41. Furthermore, Perrigo's stock has significantly underperformed against the S&P 500 over multiple periods, with a year-to-date return of -16.84% compared to the S&P 500's 12.22%, reinforcing the notion that the stock is not a compelling investment at this time.