Is AtriCure, Inc. overvalued or undervalued?

As of 1 November 2022, AtriCure, Inc. has moved from a fair to a risky valuation grade, indicating a significant shift in its financial outlook. The company is currently considered overvalued, given its negative earnings and poor return metrics, with a Price to Book Value of 3.80 and an EV to Sales ratio of 3.53. The company also shows a troubling EV to EBITDA of -459.84, reflecting substantial operational challenges.
In comparison to its peers, AtriCure's valuation appears unfavorable; for instance, its peer has a P/E ratio of -61.65 and an EV to EBITDA of -428.41, which highlights the difficulties faced by the industry. Additionally, AtriCure's ROCE and ROE stand at -5.50% and -5.76%, respectively, further emphasizing its underperformance. While the company has outperformed the S&P 500 over the past year with a return of 39.06% compared to 10.26%, this does not mitigate the concerns regarding its current valuation and operational inefficiencies.