Is Pinstripes Holdings, Inc. overvalued or undervalued?

As of 21 February 2024, the valuation grade for Pinstripes Holdings, Inc. has moved from does not qualify to risky, indicating a significant deterioration in its investment appeal. The company appears to be overvalued, particularly given its P/E ratio of -0.0654 and EV to EBITDA of -21.7205, which are starkly negative compared to typical industry benchmarks. Additionally, the lack of a PEG ratio suggests that growth expectations are not being met, further supporting the overvaluation thesis.
In comparison to its peers, Pinstripes Holdings, Inc. stands out negatively; for instance, its valuation metrics are significantly worse than those of comparable companies in the leisure services sector. Notably, the stock has underperformed dramatically against the S&P 500, with a year-to-date return of -98.23% compared to the index's positive return of 12.22%. This stark contrast reinforces the notion that the stock is not only overvalued but also struggling significantly in the current market environment.