Is ADTRAN Holdings, Inc. overvalued or undervalued?

As of 25 February 2022, the valuation grade for ADTRAN Holdings, Inc. has moved from fair to risky, indicating a significant shift in its financial outlook. The company is currently deemed overvalued, particularly given its negative P/E ratio and troubling return metrics. Key ratios include a Price to Book Value of 6.41, an EV to EBITDA of 28.19, and a ROE of -72.33%.
In comparison to its peers, ADTRAN's performance is concerning; Stratasys Ltd. has a P/E of -7.97 and an EV to EBITDA of -19.30, while Immersion Corp. stands out with a more favorable EV to EBITDA of 2.57. Additionally, ADTRAN's recent stock performance has outpaced the S&P 500 over the past year, returning 59.92% compared to the index's 10.26%, yet this does not mitigate its overall valuation concerns.