Is Shenandoah Telecommunications Co. (Virginia) overvalued or undervalued?

As of 7 August 2024, the valuation grade for Shenandoah Telecommunications Co. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued given its current financial metrics. Key ratios include a Price to Book Value of 0.81 and an EV to EBITDA of 12.54, while the ROCE and ROE are notably negative at -1.28% and -2.04%, respectively.
In comparison to peers, Shenandoah's valuation stands out unfavorably; for instance, Lumen Technologies has a P/E ratio of -8.05 and an EV to EBITDA of 5.85, while IDT Corp. is in a more favorable position with a P/E of 18.33 and an EV to EBITDA of 12.45. The company's recent stock performance has been lackluster, with a 1-year return of -13.06%, significantly underperforming the S&P 500's 10.26% return over the same period, reinforcing the notion that Shenandoah Telecommunications Co. is currently overvalued.