Is Calix, Inc. overvalued or undervalued?

As of 28 October 2024, the valuation grade for Calix, Inc. has moved from very expensive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued at its current price of $48.42, especially given its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of 4.06, an EV to EBIT of -60.26, and an EV to EBITDA of -101.95, all of which suggest significant operational challenges.
In comparison to peers, Calix, Inc. shows a stark contrast with ViaSat, Inc., which has a P/E of -6.55 and an EV to EBITDA of 4.94. This highlights Calix's underperformance relative to its industry peers. Additionally, the company's return metrics indicate that while it has outperformed the S&P 500 year-to-date with a return of 38.86% compared to 2.44%, this does not sufficiently justify its current valuation given the underlying financial struggles. Overall, Calix, Inc. is considered overvalued based on its current financial ratios and peer comparisons.