Is Quad/Graphics, Inc. overvalued or undervalued?

As of 2 May 2023, the valuation grade for Quad/Graphics, Inc. has moved from expensive to risky, indicating a shift in perception regarding its investment potential. The company appears to be undervalued, with a P/E ratio of 5.01, significantly lower than peers such as CompoSecure, Inc. at 18.16 and Deluxe Corp. at 7.11. Additionally, Quad/Graphics boasts a PEG ratio of 0.05 and an impressive ROE of 65.47%, suggesting strong profitability relative to its price.
In comparison to its peers, Quad/Graphics' EV to EBITDA stands at 3.60, while CompoSecure and Deluxe Corp. have ratios of 15.52 and 5.47, respectively. This disparity further supports the notion that Quad/Graphics is undervalued in the current market. Despite a year-to-date return of -21.95%, the company's strong fundamentals and low valuation ratios indicate potential for recovery and growth.