Is Sonder Holdings, Inc. overvalued or undervalued?

As of 9 February 2022, Sonder Holdings, Inc. has moved from a grade of "does not qualify" to "risky." The company is currently overvalued, reflected by its negative price-to-book value of -0.04 and an EV to EBITDA ratio of 9.11, which indicates a high valuation relative to its earnings potential. Additionally, the company's return on equity (ROE) is negative, further highlighting its financial struggles.
In comparison to its peers, Sonder's P/E ratio is not applicable due to its loss-making status, while its EV to EBITDA ratio of 9.05 is comparable to industry standards. Notably, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -52.2% compared to the index's 2.44%. This underperformance, along with the company's financial ratios, reinforces the conclusion that Sonder Holdings, Inc. is overvalued at its current price of $1.52.