Is Torrid Holdings, Inc. overvalued or undervalued?

As of 8 September 2021, the valuation grade for Torrid Holdings, Inc. moved from very expensive to risky, indicating a shift in perception regarding its market valuation. The company appears to be overvalued, as evidenced by its P/E ratio of 51, which is significantly higher than its peers, such as Beyond, Inc. with a P/E of -3.83 and 1-800-FLOWERS.COM, Inc. at -8.52. Additionally, Torrid's EV to EBITDA ratio of 6.30 and EV to Sales ratio of 0.75 suggest that the company is not generating sufficient earnings relative to its enterprise value.
The company's performance has been disappointing compared to the S&P 500, with a year-to-date return of -64.24% versus the index's 12.22%. This stark contrast reinforces the notion that Torrid Holdings is currently overvalued, as it struggles to deliver returns in a rising market environment.