Is Spruce Power Holding Corp. overvalued or undervalued?
As of May 10, 2022, Spruce Power Holding Corp. is considered risky and overvalued due to a negative P/E ratio, poor financial metrics, and a year-to-date stock decline of 33%, contrasting with the S&P 500's gain of 2.44%.
As of 10 May 2022, the valuation grade for Spruce Power Holding Corp. moved from very attractive to risky, indicating a significant shift in its financial outlook. The company is currently overvalued, as evidenced by its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of 0.26, an EV to EBITDA of 52.38, and a ROE of -24.15%. In comparison with peers, Spruce Power's valuation appears unfavorable; for instance, Kenon Holdings Ltd. has a fair P/E of 26.98, while Hawaiian Electric Industries, Inc. shows a risky EV to EBITDA of -2.26. The company's stock performance has been particularly poor, with a year-to-date decline of 33%, contrasting sharply with the S&P 500's 2.44% gain. Overall, these factors suggest that Spruce Power is not positioned favorably in the current market environment.
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