Is The RealReal, Inc. overvalued or undervalued?

As of 4 November 2019, the valuation grade for The RealReal, Inc. moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its negative P/E ratio and a Price to Book Value of -1.92, which suggests that the market is pricing the stock higher than its book value. Additionally, the EV to Sales ratio stands at 1.50, which is concerning in light of the company's current financial struggles.
When compared to peers, The RealReal's valuation metrics are significantly worse; for instance, thredUP, Inc. has a P/E of -41.89 and EV to EBITDA of -111.34, while Revolve Group, Inc. shows a fair valuation with a P/E of 35.21. The RealReal's recent stock performance has been mixed, with a 1-year return of 233.64% compared to the S&P 500's 17.14%, but the year-to-date return of -2.01% against the S&P's 12.22% suggests a potential correction ahead. Overall, the company is currently overvalued based on its financial ratios and peer comparisons.