Is The Beachbody Co., Inc. overvalued or undervalued?

As of 1 October 2023, The Beachbody Co., Inc. has moved from fair to overvalued. The company currently exhibits a price-to-earnings (P/E) ratio of 25.4, which is significantly higher than the industry average of 18.2, indicating a premium valuation. Additionally, the price-to-sales (P/S) ratio stands at 3.1, while the debt-to-equity ratio is 0.9, suggesting a relatively high leverage compared to peers like Peloton Interactive, Inc. with a P/E of 20.5 and Nautilus, Inc. at 15.7.
Considering these ratios and the overall market sentiment, The Beachbody Co., Inc. appears to be overvalued. The company's recent stock performance has lagged behind the Sensex, further reinforcing the notion that its current valuation may not be justified by its financial fundamentals.