Is Stitch Fix, Inc. overvalued or undervalued?

As of 8 June 2020, the valuation grade for Stitch Fix, Inc. moved from expensive to risky, indicating a significant downgrade in its investment attractiveness. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 3.02 and an EV to EBITDA ratio of -19.14, which suggests negative earnings relative to its enterprise value. Additionally, the ROE stands at -19.34%, reflecting ongoing losses that further complicate its valuation.
In comparison to its peers, Stitch Fix, Inc. has a notably low EV to EBITDA ratio compared to Shoe Carnival, Inc. at 8.6559 and Caleres, Inc. at 4.7906, both of which are considered attractive. Furthermore, the company's recent stock performance shows a year-to-date return of 32.48%, significantly outperforming the S&P 500's 12.22% return, although its 5-year return of -79.87% starkly contrasts with the S&P's impressive 96.61% return. This divergence highlights the risks associated with investing in Stitch Fix, reinforcing the conclusion that it is currently overvalued.