Is Surf Air Mobility, Inc. overvalued or undervalued?

As of 16 August 2023, the valuation grade for Surf Air Mobility, Inc. has moved from does not qualify to risky, indicating a heightened level of uncertainty regarding its financial health. The company is currently assessed as overvalued, given its negative key ratios, including a Price to Book Value of -0.34, an EV to EBIT of -3.87, and an EV to EBITDA of -4.79. These figures reflect significant losses and a lack of profitability, which are concerning for potential investors.
In comparison to its peers, Surf Air Mobility, Inc. shows a stark contrast to Air Transport Services Group, Inc., which has a P/E ratio of 54.21, and Sun Country Airlines Holdings, Inc., with an EV to EBITDA of 3.65, both indicating much stronger financial positions. The negative returns of Surf Air Mobility, with a year-to-date decline of 64.56% compared to a modest 2.44% gain in the S&P 500, further reinforces the notion that the stock is overvalued at its current price of $1.91.