Is Telos Corp. overvalued or undervalued?

As of 17 May 2021, the valuation grade for Telos Corp. moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued, particularly given its negative performance metrics. Key ratios include a Price to Book Value of 1.60, an EV to EBIT of -3.30, and an EV to EBITDA of -4.39, all of which suggest significant financial distress.
In comparison to its peers, Telos Corp. has a notably poor EV to EBITDA ratio of -11.4010, while MediaAlpha, Inc. shows a more favorable ratio of 11.0754, and OneSpan, Inc. has an attractive ratio of 8.4335. These comparisons highlight the challenges Telos faces in the current market environment. Despite a strong year-to-date return of 100.29% compared to the S&P 500's 12.22%, the long-term performance remains concerning, with a 5-year return of -90.59% versus the S&P 500's 96.61%, reinforcing the notion that the stock may be overvalued.