Is Prospector Capital Corp. overvalued or undervalued?

As of 14 August 2024, Prospector Capital Corp. has moved from a grade of "does not qualify" to "risky." The company is currently considered overvalued, given its significant negative valuation metrics. The P/E ratio is not applicable due to losses, while the Price to Book Value stands at -0.17, indicating a troubling financial position. Additionally, the EV to EBITDA ratio is -2.34, further highlighting the company's struggles.
In comparison to its peers, Prospector Capital Corp. shows stark contrasts, particularly against A SPAC II Acquisition Corp., which has a P/E of 65.41, and Mercato Partners Acquisition Corp. with an EV to EBITDA of 1.89. The company's recent stock performance has been dismal, with a year-to-date return of -99.1%, starkly underperforming the S&P 500's 2.44% return. This combination of poor financial ratios and negative stock performance suggests that Prospector Capital Corp. is not only overvalued but also poses significant risks for potential investors.