Is 3D Systems Corp. overvalued or undervalued?

As of 9 November 2022, the valuation grade for 3D Systems Corp. moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently overvalued, as evidenced by its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of 1.64, an EV to EBIT of -2.57, and an EV to EBITDA of -3.43, all of which suggest underlying financial challenges.
In comparison to its peers, 3D Systems Corp. shows a stark contrast to Applied Digital Corp., which has a P/E ratio of -24.45, and A10 Networks, Inc., which is fairly valued with a P/E of 28.77. The negative returns of 3D Systems, particularly a year-to-date decline of 56.10% compared to a modest 2.44% gain in the S&P 500, further underscores its overvaluation and the risks associated with investing in this company.