Is Tronox Holdings Plc overvalued or undervalued?

As of 26 July 2023, the valuation grade for Tronox Holdings Plc has moved from very attractive to risky. The company is currently considered overvalued. Key ratios indicate significant concerns, with a Price to Book Value of 0.56, an EV to EBITDA of 9.00, and a ROE of -9.11%. These figures highlight the company's struggles, particularly in generating returns for shareholders.
In comparison to peers, Tronox Holdings Plc's P/E ratio is notably negative at -5.70, while Cabot Corp. holds an attractive P/E of 8.37, and The Chemours Co. boasts a very attractive P/E of 11.48. Additionally, the company's recent performance has been poor, with a year-to-date return of -48.36%, significantly underperforming the S&P 500's 2.44% during the same period. This combination of weak financial ratios and disappointing returns suggests that Tronox Holdings Plc is indeed overvalued in the current market environment.