Is Ranpak Holdings Corp. overvalued or undervalued?

As of 12 February 2019, the valuation grade for Ranpak Holdings Corp. moved from expensive to risky, indicating a shift in perception regarding its investment potential. Based on the available metrics, the company appears to be overvalued, particularly given its negative P/E ratio and low return on equity (ROE) of -3.07%. The price-to-book value stands at 0.56, while the EV to EBITDA ratio is 14.21, which suggests that the company is not performing well relative to its valuation.
In comparison to peers, Ranpak's valuation metrics are concerning; for instance, Karat Packaging, Inc. has a significantly better EV to EBITDA ratio of 8.15 and a P/E ratio of 15.53, marking it as very attractive. Furthermore, the company's recent stock performance has been underwhelming, with a year-to-date return of -24.56% compared to the S&P 500's 12.22%, highlighting the challenges it faces in the market.