Is PSQ Holdings, Inc. overvalued or undervalued?

As of 14 November 2023, the valuation grade for PSQ Holdings, Inc. has moved from does not qualify to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued, primarily due to its negative performance metrics. Key ratios include a Price to Book Value of 4.37, an EV to EBIT of -2.17, and an EV to EBITDA of -2.36, all of which suggest severe operational challenges.
In comparison to its peers, PSQ Holdings, Inc. has a notably low EV to EBITDA ratio compared to Red Violet, Inc., which stands at 31.93, and Priority Technology Holdings, Inc. at 7.73. This stark contrast highlights the financial difficulties faced by PSQ Holdings. Additionally, the company's recent stock performance has significantly lagged behind the S&P 500, with a year-to-date return of -59.25% compared to the S&P 500's 2.44%, further reinforcing its overvalued status.