Is XBP Europe Holdings, Inc. overvalued or undervalued?

As of 11 May 2023, the valuation grade for XBP Europe Holdings, Inc. moved from does not qualify to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued given its current metrics, particularly with a P/E ratio of -23.95, which is significantly unfavorable compared to the industry average. Additionally, the EV to EBITDA ratio stands at 14.31, further suggesting that the stock may not be a sound investment at its current price of 1.05.
In comparison to its peers, XBP Europe Holdings, Inc. is underperforming, with notable competitors showing more favorable ratios. For example, if we consider a peer with a more stable valuation, the average EV to EBITDA in the software products industry typically hovers around lower figures, indicating that XBP is not aligned with industry standards. Furthermore, the company's stock has experienced a dramatic decline of -89.71% over the past three years, while the S&P 500 has gained 70.41% in the same period, underscoring the disparity in performance and reinforcing the view that XBP Europe Holdings, Inc. is currently overvalued.