Is PLAYSTUDIOS, Inc. overvalued or undervalued?

As of 3 August 2023, the valuation grade for PLAYSTUDIOS, Inc. has moved from expensive to risky, indicating a shift in perception regarding its market position. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.87, an EV to EBITDA of 3.01, and a ROCE of -5.35%.
In comparison to its peers, PLAYSTUDIOS has a significantly lower EV to EBITDA ratio than SoundHound AI, Inc. at -31.11 and Ribbon Communications, Inc. at 14.18, both of which also carry a risky valuation. The company's stock has underperformed against the S&P 500, with a year-to-date return of -26.34% compared to the index's 2.44%, reinforcing the notion of overvaluation in the current market context.