Is Planet Fitness, Inc. overvalued or undervalued?

As of 1 March 2017, the valuation grade for Planet Fitness, Inc. has moved from expensive to risky, indicating a shift in perception regarding its valuation. The company is currently assessed as overvalued, primarily due to its high P/E ratio of 49 and a negative price-to-book value of -40.43, which raises concerns about its financial health. Additionally, the EV to EBITDA ratio stands at 21.28, further supporting the notion of overvaluation.
In comparison to its peers, Planet Fitness has a P/E ratio of 47.59, which is significantly higher than Service Corp. International's attractive P/E of 21.34, and also exceeds Rollins, Inc.'s expensive P/E of 57.29. The PEG ratio of 2.59 suggests that the stock may not be justified by its growth prospects. While Planet Fitness has outperformed the S&P 500 over the past year with a return of 49.62% compared to the index's 10.26%, the current valuation metrics indicate that the stock is not a sound investment at this price level.