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

As of 7 August 2024, the valuation grade for Shenandoah Telecommunications Co. has moved from fair to risky, indicating a deterioration in its financial outlook. The company appears to be overvalued, given its negative P/E ratio and low return metrics. Key ratios include a Price to Book Value of 0.81, an EV to EBITDA of 12.54, and an EV to Capital Employed of 0.87, which suggest that the company is not generating sufficient returns relative to its capital.
In comparison with peers, Shenandoah Telecommunications Co. has a significantly worse EV to EBITDA ratio than Altice USA, Inc. at 7.94 and Consolidated Communications Holdings, Inc. at 10.57, both of which are also classified as risky. The company's recent stock performance shows a 1-week return of 3.72% compared to the S&P 500's 1.05%, but over longer periods, such as 1 year and 5 years, it has underperformed significantly with returns of -13.35% and -70.30%, respectively, versus the S&P 500's 17.14% and 96.61%.