Is RumbleOn, Inc. overvalued or undervalued?

As of 16 March 2023, RumbleOn, Inc. has moved from an attractive to a risky valuation grade, indicating a shift towards being overvalued. The company appears to be overvalued based on its current metrics, particularly with a Price to Book Value of 2.53, an EV to EBITDA of 13.31, and a ROCE of only 5.25%. In comparison, peers such as The Honest Co., Inc. have a higher P/E ratio of 23.51, while Envela Corp. shows a more favorable EV to EBITDA of 15.80, highlighting RumbleOn's relative weakness in valuation.
The stock has shown a mixed performance against the S&P 500, with a notable 1-month return of 37.00% compared to the index's 2.33%, but a concerning year-to-date return of -17.50% versus the S&P 500's 12.22%. This disparity reinforces the notion that while there may be short-term gains, the long-term outlook for RumbleOn remains precarious.