Is Soho House & Co., Inc. overvalued or undervalued?

As of 26 August 2021, the valuation grade for Soho House & Co., Inc. moved from does not qualify to risky. The company appears to be overvalued given its negative price-to-book value of -3.84 and a high EV to EBITDA ratio of 17.64, which suggests that the market is pricing the company at a premium despite its losses. Additionally, the ROCE stands at a mere 3.95%, indicating inefficient capital use compared to peers.
In comparison to its peers, Soho House's P/E ratio is significantly negative at -40.37, while Cass Information Systems, Inc. has a P/E of 29.81, and Reservoir Media, Inc. has a fair valuation with a P/E of 39.21. The company's year-to-date return of 18.79% outperformed the S&P 500's 12.22%, but the one-year return of 71.18% is notable against the S&P 500's 17.14%, suggesting that the stock's recent performance may not be sustainable given its current valuation metrics.