Is AngioDynamics, Inc. overvalued or undervalued?

As of 5 January 2024, AngioDynamics, Inc. has moved from a fair to a risky valuation grade, indicating a deteriorating outlook. The company appears to be overvalued given its current price of 11.01, especially when considering its negative P/E ratio and poor return metrics, such as a ROCE of -18.35% and a ROE of -10.23%. The Price to Book Value stands at 2.44, which is relatively high compared to peers like CareDx, Inc. with a P/E of -27.91 and Organogenesis Holdings, Inc. with a P/E of 608.59, suggesting that AngioDynamics may not be justifying its valuation in the current market.
In terms of recent performance, AngioDynamics has shown a 1-year return of 44.87%, significantly outperforming the S&P 500's return of 17.14%, which may create a misleading perception of its value. However, the company's long-term performance is concerning, with a 3-year return of -49.66% compared to the S&P 500's 70.41%. Overall, the combination of high valuation ratios and negative returns suggests that AngioDynamics, Inc. is currently overvalued.