Is CEVA, Inc. overvalued or undervalued?

As of 9 November 2022, the valuation grade for CEVA, Inc. moved from very expensive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued given its current financial ratios, including a Price to Book Value of 1.85, an EV to EBIT of -45.30, and an EV to Sales of 3.12. These figures suggest that CEVA is struggling to generate positive earnings, which is further highlighted by its negative ROCE of -6.66% and ROE of -2.44%.
In comparison to its peers, CEVA's valuation metrics are concerning. For instance, Semtech Corp. has a P/E ratio of 89.37, while SMART Global Holdings, Inc. shows a more favorable EV to EBITDA of 8.15. This stark contrast emphasizes CEVA's relative weakness in the market. Furthermore, CEVA's recent stock performance has been underwhelming, with a year-to-date return of -32.58%, significantly lagging behind the S&P 500's 2.44% return. Overall, CEVA, Inc. is currently overvalued based on its financial performance and peer comparisons.