Is Redfin Corp. overvalued or undervalued?

As of 5 August 2021, the valuation grade for Redfin Corp. has moved from expensive to risky, indicating a deterioration in its perceived value. Based on the available metrics, the company appears to be overvalued, particularly given its negative price-to-book value of -8.07 and an EV to EBITDA ratio of -10.00, which suggest significant financial distress. Additionally, its EV to EBIT stands at -7.49, further highlighting the challenges the company faces.
In comparison to its peers, Redfin Corp. has a P/E ratio of -8.1067 and an EV to EBITDA of -11.0319, which are indicative of its struggles relative to the industry. Notably, while Redfin has shown a strong return of 98.4% over the past year, this is contrasted sharply with the S&P 500's 17.14% return, suggesting that despite its recent performance, the company's valuation metrics do not support its current price level.