Is PROOF Acquisition Corp. I overvalued or undervalued?

As of 10 May 2023, the valuation grade for PROOF Acquisition Corp. I has moved from does not qualify to risky, indicating a heightened level of concern regarding its financial health. The company is currently considered overvalued, particularly given its negative P/E ratio and other troubling metrics. The price-to-book value stands at -0.24, while the EV to EBITDA ratio is -1.30, reflecting significant operational challenges.
When compared to peers, PROOF Acquisition Corp. I's valuation appears unfavorable. For instance, Viveon Health Acquisition Corp. has a P/E ratio of -14.82, while EF Hutton Acquisition Corp. I, also categorized as risky, shows a P/E of -1.06. Additionally, the company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -74.2% compared to the index's modest gain of 2.44%. Overall, the financial indicators and peer comparisons suggest that PROOF Acquisition Corp. I is overvalued in its current state.