Is SNDL, Inc. overvalued or undervalued?

As of 30 March 2020, the valuation grade for SNDL, Inc. moved from does not qualify to risky, indicating increased concerns about its financial health. Based on the available metrics, SNDL appears to be overvalued, particularly given its negative P/E ratio and poor return metrics. The Price to Book Value stands at 0.44, while the EV to EBITDA is 9.91, and the EV to Sales is 0.29, which suggests that the company is not generating sufficient earnings relative to its valuation.
In comparison to peers, SNDL's valuation ratios are concerning; for instance, MGP Ingredients, Inc. has a P/E of 6.85 and an EV to EBITDA of 6.21, which are significantly more favorable. Moreover, SNDL's return performance has been mixed, with a 1-year return of 20.19% compared to the S&P 500's 17.14%, but it has underperformed over longer periods, such as the 3-year and 5-year returns, which were -3.03% and -2.99%, respectively. This performance suggests that while there may be short-term gains, the long-term outlook remains bleak, reinforcing the view that SNDL is overvalued.