Is Accuray, Inc. overvalued or undervalued?

As of 13 August 2025, the valuation grade for Accuray, Inc. has moved from attractive to risky, indicating a shift in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 2.68 and an EV to EBITDA of 14.26, which are relatively high compared to its peers. Additionally, the company's Return on Capital Employed (ROCE) stands at a modest 6.87%, while its Return on Equity (ROE) is negative at -0.73%, further highlighting its financial struggles.
In comparison to its peers, Accuray's EV to EBITDA ratio of 14.26 is significantly lower than that of AngioDynamics, Inc. at 226.06, but higher than Tactile Systems Technology, Inc. at 9.59, which is rated fair. The stock has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -12.12% compared to the S&P 500's 12.22%. This underperformance reinforces the notion that Accuray is not a favorable investment at its current valuation.