Is Titan Machinery, Inc. overvalued or undervalued?

As of 20 March 2025, Titan Machinery, Inc. has moved from an expensive to a risky valuation grade. The company appears to be overvalued based on its current metrics, particularly reflected in its Price to Book Value of 0.72 and a concerning EV to EBITDA ratio of 81.56. Additionally, the negative ROCE of -1.46% and ROE of -9.55% further underscore the company's financial challenges.
In comparison to its peers, Titan Machinery's valuation ratios are significantly less favorable; for instance, CrossAmerica Partners LP has a P/E ratio of 8.77 and an EV to EBITDA of 8.94, while Hudson Technologies, Inc. shows a fair valuation with a P/E of 24.38 and an EV to EBITDA of 13.97. Notably, Titan Machinery's stock has underperformed against the S&P 500 in the short term, with a 1-week return of -3.76% compared to the S&P 500's 1.05%, although it has shown a strong year-to-date return of 35.88% against the index's 12.22%.