Is Sabre Corp. overvalued or undervalued?

As of 8 May 2020, the valuation grade for Sabre Corp. has moved from very attractive to risky, indicating a significant deterioration in its investment appeal. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of -0.72 and an EV to EBITDA ratio of 12.95, which suggests that investors are paying a premium despite the company's losses. Additionally, the Return on Capital Employed (ROCE) stands at 10.65%, which is relatively low compared to industry expectations.
In comparison to its peers, Sabre Corp. has a P/E ratio of -3.90, while the industry average EV to EBITDA is around 11.29, highlighting its underperformance. The stock has also significantly lagged behind the S&P 500, with a year-to-date return of -47.67% compared to the index's 12.22%, reinforcing the notion that the stock is currently overvalued.