Is Rafael Holdings, Inc. overvalued or undervalued?

As of 13 June 2023, the valuation grade for Rafael Holdings, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its investment appeal. The company appears to be overvalued, particularly given its P/E ratio of 4, which is substantially lower than peers like Five Point Holdings LLC at 6.72 and AMREP Corp. at 8.69. Additionally, Rafael's EV to EBITDA stands at -3.54, highlighting negative earnings potential compared to its peers.
Rafael's financial metrics further underscore its valuation concerns, with a ROE of 31.97% that, while seemingly positive, is overshadowed by a troubling ROCE of -62.16%. The PEG ratio of 0.01 suggests that the company's growth prospects are not being adequately reflected in its current price. Recent stock performance shows a 1-week decline of 17.50%, contrasting sharply with the S&P 500's minimal loss of 0.13%, reinforcing the notion that Rafael Holdings, Inc. is currently overvalued in the market.