Is Traeger, Inc. overvalued or undervalued?

As of 15 November 2021, the valuation grade for Traeger, Inc. has moved from attractive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, particularly given its negative P/E ratio and low ROE of -10.63%. Key valuation ratios include a Price to Book Value of 0.71, an EV to EBITDA of 10.82, and an EV to Sales of 1.02, which suggest that the company is not performing well compared to its peers.
In comparison to its peers, Turtle Beach Corp. has a fair valuation with a P/E of 18.60 and an EV to EBITDA of 8.71, while Hamilton Beach Brands Holding Co. also holds a fair valuation with a P/E of 5.71 and an EV to EBITDA of 5.49. Traeger’s stock has significantly underperformed against the S&P 500, with a year-to-date return of -43.51% compared to the index's 12.22%, reinforcing the notion that the stock is overvalued.