Is Waldencast Plc overvalued or undervalued?

As of 10 November 2022, the valuation grade for Waldencast Plc moved from does not qualify to risky. The company is currently considered overvalued. Key ratios include an EV to EBITDA of 3.23 and an EV to Sales of 1.05, while the P/E ratio remains not applicable due to the company being loss-making. In comparison, peer Olaplex Holdings, Inc. has a significantly higher P/E of 76.71 and an EV to EBITDA of 9.24, indicating a stark contrast in valuation metrics.
Waldencast's performance has been notably poor, with a year-to-date return of -44.03%, compared to a modest 2.44% return for the S&P 500. Additionally, Nu Skin Enterprises, Inc., another peer, is also rated risky with a P/E of 3.95 and an EV to EBITDA of 6.26, further highlighting the challenges Waldencast faces in its competitive landscape. Overall, the combination of its financial metrics and recent performance suggests that Waldencast Plc is overvalued in the current market context.