Is TTEC Holdings, Inc. overvalued or undervalued?

As of 8 May 2024, the valuation grade for TTEC Holdings, Inc. has moved from expensive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 1.57, an EV to EBITDA of 7.40, and a negative ROE of -21.76%. These ratios suggest that the company's valuation is not justified by its financial performance.
In comparison to its peers, TTEC Holdings, Inc. has a notably lower EV to EBITDA ratio of 6.38 for PROS Holdings, Inc., which also reflects a risky valuation. Additionally, TTEC's stock has significantly underperformed against the S&P 500, with a YTD return of -24.05% compared to the index's 12.22%, and a staggering 10-year decline of -93.14% versus the S&P 500's 231.64%. This underperformance reinforces the notion that TTEC Holdings, Inc. is currently overvalued.