Is Rayonier Advanced Materials, Inc. overvalued or undervalued?

As of 7 November 2023, the valuation grade for Rayonier Advanced Materials, Inc. has moved from very attractive to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued based on its financial ratios, including a Price to Book Value of 0.38 and an EV to EBITDA of 4.58, which suggest that the market is pricing the stock higher than its underlying value. Additionally, the company has a negative ROE of -1.34%, further highlighting its struggles in generating returns for shareholders.
In comparison to its peers, Rayonier Advanced Materials, Inc. shows a stark contrast with Proto Labs, Inc., which has a P/E ratio of 44.27 and is deemed expensive, while Westlake Chemical Partners LP is rated very attractive with a P/E of 2.42. This disparity in valuation metrics underscores the challenges faced by Rayonier Advanced Materials, Inc. in the current market environment. Furthermore, the company's year-to-date return of -53.70% compared to the S&P 500's 2.44% reinforces the perception of overvaluation amidst its financial difficulties.