Is Cellebrite DI Ltd. overvalued or undervalued?

As of 8 August 2023, Cellebrite DI Ltd. has moved from a fair to a risky valuation grade. The company is currently considered overvalued, particularly given its negative financial metrics. The P/E ratio is not applicable due to the company being loss-making, while the price-to-book value stands at 10.89, and the EV to EBITDA ratio is significantly high at 50.27. Additionally, the return on equity (ROE) is a concerning -53.38%, indicating severe profitability issues.
In comparison to its peers, Cellebrite's valuation metrics are starkly unfavorable. For instance, Clearwater Analytics Holdings, Inc. has a P/E of 12.55 and an EV to EBITDA of 127.79, while SolarWinds Corp. shows a P/E of 25.03 and an EV to EBITDA of 13.67, both of which suggest more attractive valuations. Notably, Cellebrite's recent stock performance has been mixed, with a year-to-date return of -26.83%, contrasting sharply with the S&P 500's 2.44% return during the same period, further underscoring its overvaluation status.