Is Titan Machinery, Inc. overvalued or undervalued?

As of 20 March 2025, Titan Machinery, Inc. has moved from a fair to a risky valuation grade. The company is currently considered overvalued given its significant negative performance metrics, including a P/E ratio of NA due to losses, a Price to Book Value of 0.72, and an EV to EBITDA of 81.56. The Return on Capital Employed (ROCE) stands at -1.46%, and the Return on Equity (ROE) is at -9.55%, indicating poor profitability and efficiency.
In comparison to its peers, Titan Machinery, Inc. shows a stark contrast; for instance, Global Partners LP is rated very attractive with a P/E of 11.39 and an EV to EBITDA of 8.15, while Distribution Solutions Group, Inc. has a P/E of 42.30 and an EV to EBITDA of 10.88, both suggesting much stronger financial health. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a 1-month return of -5.02% compared to the S&P 500's 3.83%, further reinforcing the notion that Titan Machinery is overvalued in its current state.