Is Caesarstone Ltd. overvalued or undervalued?

As of 1 March 2023, the valuation grade for Caesarstone Ltd. moved from expensive to risky, indicating a deteriorating outlook. The company is considered overvalued given its negative financial metrics, including a Price to Book Value of 0.25, an EV to EBIT ratio of 0.47, and an EV to EBITDA ratio of 0.80. In comparison, peers such as Haynes International, Inc. have a P/E ratio of 20.34, while Ferroglobe PLC shows an EV to EBITDA of 19.34, highlighting the significant disparity in valuation.
The company's recent performance has been poor, with a year-to-date return of -63.29% compared to the S&P 500's 12.22%, and a staggering -84.58% return over both the 3-year and 5-year periods, which underscores the challenges it faces. Overall, Caesarstone Ltd. appears to be overvalued in the current market environment.