Is Veradigm, Inc. overvalued or undervalued?

As of 8 July 2024, the valuation grade for Veradigm, Inc. has moved from expensive to does not qualify, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued given its high P/E ratio of 142, an EV to EBIT of 56.85, and a Price to Book Value of 1.40, which are all considerably elevated compared to its peers. For instance, NextGen Healthcare, Inc. has a fair valuation with a P/E ratio of -1604.29 and an EV to EBITDA of 35.23, suggesting that Veradigm's metrics are not justified in the current market context.
The stock has significantly underperformed against the S&P 500, with a year-to-date return of -52.31% compared to the S&P 500's 12.22%, and a three-year return of -71.45% versus the S&P 500's 70.41%. This stark contrast reinforces the notion that Veradigm is overvalued in its current state.