Is Trinseo Plc overvalued or undervalued?

As of 2 November 2022, Trinseo Plc's valuation grade changed from expensive to risky, indicating a deterioration in its financial standing. The company appears to be overvalued, particularly given its negative price-to-book value of -0.21 and an EV to EBITDA ratio of 14.30, which suggests that it is trading at a premium relative to its earnings potential. Additionally, the EV to Sales ratio of 0.73 further reinforces concerns about its valuation compared to its revenue generation capabilities.
In comparison to its peers, Trinseo's valuation metrics are concerning; for instance, Westlake Chemical Partners LP, which is rated very attractive, has a P/E ratio of 2.42, while Mativ Holdings, Inc. is also rated risky with a significantly higher EV to EBITDA of 9.54. Trinseo's recent stock performance has been notably poor, with a year-to-date return of -48.63%, starkly underperforming the S&P 500's gain of 12.22% during the same period, reflecting the challenges it faces in the specialty chemicals sector.