Is Arlo Technologies, Inc. overvalued or undervalued?

As of 27 August 2018, the valuation grade for Arlo Technologies, Inc. moved from does not qualify to risky, indicating increased concerns about its financial health. The company appears to be overvalued given its negative earnings and high valuation ratios, such as a Price to Book Value of 16.79 and an EV to Sales ratio of 3.14. Additionally, its negative ROE of -19.03% further underscores the challenges it faces in generating shareholder returns.
In comparison to its peers, Arlo's valuation metrics are significantly worse; for instance, InterDigital, Inc. has a P/E ratio of 43.22 and an EV to EBITDA of 31.92, while ViaSat, Inc. shows a more manageable EV to EBITDA of 6.65. Despite Arlo's recent stock performance, with a year-to-date return of 60.95% compared to the S&P 500's 12.22%, the underlying financial metrics suggest that the stock is not justified at its current price levels.