Is Travel + Leisure Co. overvalued or undervalued?

As of 8 August 2018, the valuation grade for Travel + Leisure Co. moved from fair to risky, indicating a shift towards a more cautious outlook. The company appears overvalued given its current metrics, particularly with a P/E ratio of 22, which is significantly higher than peers like Norwegian Cruise Line Holdings Ltd. at 14.40 and Hyatt Hotels Corp. at 15.27. Additionally, the EV to EBITDA ratio stands at 9.78, while its peer average suggests more favorable valuations elsewhere in the industry.
The negative price-to-book value of -11.19 and negative return on equity further underscore the challenges facing Travel + Leisure Co. compared to its peers, which are generally performing better. Despite a strong one-year stock return of 44.15% compared to the S&P 500's 17.14%, the long-term performance shows a concerning trend, with a five-year return of 90.55% trailing the S&P 500's 96.61%. This combination of high valuation ratios and underperformance relative to peers suggests that the company is overvalued in the current market.