Is Skillz, Inc. overvalued or undervalued?

As of 16 November 2020, the valuation grade for Skillz, Inc. moved from does not qualify to risky, indicating increased concerns regarding its financial health. The company appears to be overvalued given its negative profitability metrics and low valuation ratios. The Price to Book Value stands at 0.71, while the EV to EBITDA is at 0.28, and the EV to EBIT is at 0.27, all of which suggest that the company is not generating sufficient earnings relative to its valuation.
In comparison to its peers, Skillz, Inc. has a significantly lower EV to EBITDA ratio than Rackspace Technology, Inc. at 11.2943 and Forge Global Holdings, Inc. at -2.9740, indicating that it is not performing well in generating earnings from its enterprise value. Additionally, the company has a negative ROE of -57.12%, further highlighting its struggles. Despite a strong year-to-date return of 49.30%, the long-term performance has been poor, with a 3-year return of -67.35% compared to the S&P 500's 70.41%, reinforcing the notion that Skillz, Inc. is currently overvalued.