Is Wag! Group Co. overvalued or undervalued?

As of 10 November 2022, the valuation grade for Wag! Group Co. has moved from does not qualify to risky, indicating a significant downgrade in its financial standing. The company appears to be overvalued based on its current metrics, particularly with a price to book value of -2.06 and an EV to EBITDA ratio of -2.15, both suggesting severe financial distress. Additionally, the return on capital employed (ROCE) stands at a staggering -125.12%, reflecting the company's inability to generate positive returns on its investments.
In comparison to its peers, Wag! Group Co. has a negative P/E ratio of -0.3365 and an EV to EBITDA of -2.0170, which are considerably worse than companies like Heidrick & Struggles International, Inc., which has a P/E of 11.2117 and an EV to EBITDA of 5.9287. Other peers, such as Kelly Services, Inc., also exhibit more favorable ratios with a P/E of 5.4836. The company's stock performance has been dismal, with a year-to-date return of -53.92%, starkly contrasting with the S&P 500's positive return of 2.44% over the same period, further reinforcing the notion that Wag! Group Co. is currently overvalued.