Is Spruce Power Holding Corp. overvalued or undervalued?

As of 10 May 2022, the valuation grade for Spruce Power Holding Corp. has moved from attractive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.26 and an EV to Sales ratio of 7.25, which suggests a high valuation relative to its sales. Additionally, the negative EV to EBIT of -44.54 and a ROE of -24.15% further reinforce concerns about its profitability and operational efficiency.
In comparison to its peers, Spruce Power Holding Corp. has a significantly lower EV to EBITDA ratio of 52.38 compared to Genie Energy Ltd.'s 41.1823, indicating it is not performing well relative to its industry. Furthermore, while the company has shown a strong 1-week return of 9.58% compared to the S&P 500's 1.05%, its year-to-date return of -38.38% starkly contrasts with the S&P 500's 12.22%, highlighting ongoing challenges. Overall, these factors suggest that Spruce Power Holding Corp. is overvalued in the current market environment.