Is PLAYSTUDIOS, Inc. overvalued or undervalued?

As of 3 August 2023, the valuation grade for PLAYSTUDIOS, Inc. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.87, an EV to EBITDA ratio of 3.01, and a negative ROCE of -5.35%. In comparison to its peers, PLAYSTUDIOS has a significantly lower EV to EBITDA ratio than Ribbon Communications, Inc. at 11.3776 and a worse P/E ratio than Consensus Cloud Solutions, Inc. at 6.3511.
The stock has underperformed against the S&P 500, with a year-to-date return of -46.8% compared to the index's gain of 12.22%. This stark contrast reinforces the notion that PLAYSTUDIOS is not only facing valuation challenges but is also struggling to deliver returns in a broader market context.