Is Ranpak Holdings Corp. overvalued or undervalued?

As of 12 February 2019, the valuation grade for Ranpak Holdings Corp. has moved from very expensive to risky. The company is currently assessed as overvalued. Key ratios include a price-to-book value of 0.56 and an EV to EBITDA of 14.21, which indicates a significant discrepancy in valuation compared to its peers. Notably, Karat Packaging, Inc. is categorized as very attractive with a P/E ratio of 17.07 and an EV to EBITDA of 9.43, highlighting the relative overvaluation of Ranpak.
The company's financial performance is concerning, with a return on capital employed (ROCE) of -1.81% and a return on equity (ROE) of -3.07%. Furthermore, the stock has underperformed significantly compared to the S&P 500, with a year-to-date return of -50.15% versus the index's 2.44%. This combination of poor financial metrics and unfavorable peer comparisons supports the conclusion that Ranpak Holdings Corp. is overvalued in the current market environment.