Is Polished.com, Inc. overvalued or undervalued?

As of 9 February 2023, the valuation grade for Polished.com, Inc. has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its financial metrics. Key ratios reflect this concern, with a P/E ratio of 0.00, an EV to EBIT of -5.35, and an EV to EBITDA of -11.31, all of which suggest a lack of profitability and operational efficiency.
In comparison to its peers, Polished.com, Inc. stands out with a notably poor performance against companies like JanOne, Inc. with a P/E of -23.30 and Kirkland's, Inc. with an EV to EBITDA of -15.02. The negative returns over the past year, with a decline of 66.67% compared to a 10.26% increase in the S&P 500, further reinforce the notion that the stock is overvalued. Overall, the combination of weak financial ratios and poor market performance leads to the conclusion that Polished.com, Inc. is currently overvalued.