Is Solo Brands, Inc. overvalued or undervalued?

As of 14 March 2024, the valuation grade for Solo Brands, Inc. has moved from very attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, given its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of 0.08, an EV to EBITDA of -29.29, and a ROE of -39.95%.
In comparison to its peers, Solo Brands significantly lags behind Distribution Solutions Group, Inc., which has a P/E of 42.30, and DXP Enterprises, Inc., with a P/E of 16.05. The stark contrast in valuation metrics highlights the challenges Solo Brands faces within its industry. Additionally, the company's stock performance has been dismal, with a year-to-date return of -76.5% compared to a modest 2.44% return of the S&P 500, further reinforcing the perception of overvaluation.