Is Qurate Retail, Inc. overvalued or undervalued?

As of 28 February 2024, the valuation grade for Qurate Retail, Inc. has moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued, particularly when considering its P/E ratio of 0, a price to book value of -0.04, and an EV to EBITDA of 5.45. These ratios suggest significant concerns about profitability and asset valuation compared to its peers.
In comparison to its industry peers, Qurate Retail's valuation metrics are notably weaker; for instance, Sinclair, Inc. has a P/E of 6.25 and an EV to EBITDA of 5.64, while Gray Television, Inc. shows a P/E of 3.83 and an EV to EBITDA of 5.94. The stark contrast in these ratios highlights Qurate's challenging position within the media and entertainment sector. Additionally, the company's recent stock performance has been troubling, with a one-year return of -46.56%, significantly underperforming the S&P 500's 17.14% return, reinforcing the notion that the stock is overvalued.