Is CEVA, Inc. overvalued or undervalued?

As of 9 November 2022, the valuation grade for CEVA, Inc. moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued, given its negative valuation 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. In comparison, peers such as Indie Semiconductor, Inc. and Canadian Solar, Inc. have significantly lower EV to EBITDA ratios of -9.7450 and 10.8902, respectively, highlighting CEVA's relative overvaluation.
Despite a strong one-week return of 10.39% compared to the S&P 500's 1.05%, CEVA has underperformed over longer periods, with a year-to-date return of -16.51% versus the S&P 500's 12.22%. This trend reinforces the notion that CEVA, Inc. is not only overvalued but also struggling to maintain competitive performance in the market.