Is RumbleOn, Inc. overvalued or undervalued?

As of 16 March 2023, RumbleOn, Inc. has moved from a very attractive to a risky valuation grade. The company is currently considered overvalued given its financial metrics and peer comparisons. Key ratios include a Price to Book Value of 2.53, an EV to EBITDA of 13.31, and a ROCE of 5.25%. Notably, the company has a negative P/E ratio, indicating it is loss-making, while its ROE stands at a concerning -143.87%.
In comparison to its peers, RumbleOn's valuation appears unfavorable. For instance, The Honest Co., Inc. has a P/E of 40.86 and an EV to EBITDA of 26.73, while Envela Corp. is rated attractive with a P/E of 19.90 and an EV to EBITDA of 13.24. Additionally, RumbleOn's stock has significantly underperformed against the S&P 500 over various time frames, particularly with a year-to-date return of -59.58%, reinforcing the notion that the stock is overvalued in its current state.