Is thredUP, Inc. overvalued or undervalued?

As of 8 November 2021, thredUP, Inc. has moved from a valuation grade of "does not qualify" to "risky." The company is currently considered overvalued. Key ratios include a Price to Book Value of 16.28, an EV to EBIT of -20.95, and an EV to EBITDA of -46.09, indicating significant losses and a lack of profitability.
In comparison to its peers, thredUP's valuation metrics are concerning. For instance, Groupon, Inc. has a P/E ratio of -52.51 and an EV to EBITDA of 68.79, while Revolve Group, Inc. is in a more favorable position with a P/E of 28.10 and an EV to EBITDA of 18.46. The stark contrast in these ratios highlights thredUP's precarious financial standing. Additionally, thredUP's stock has significantly outperformed the S&P 500 year-to-date, with a return of 504.32% compared to the S&P's 2.44%, but this does not mitigate the overall valuation concerns.