Is Cohu, Inc. overvalued or undervalued?

As of 2 May 2024, the valuation grade for Cohu, Inc. has moved from expensive to risky. The company appears to be overvalued given its current financial metrics. Key ratios include a Price to Book Value of 1.03, an EV to EBIT of -8.81, and an EV to EBITDA of -31.98. In comparison, peers such as Tower Semiconductor Ltd. have a P/E ratio of 37.63 and an EV to EBITDA of 13.38, indicating a significant disparity in valuation. Cohu's recent stock performance shows a 1-week return of 9.51% and a 1-month return of 16.18%, both outperforming the S&P 500, but the longer-term returns are concerning, with a year-to-date return of -12.85% and a 3-year return of -14.86%, significantly lagging behind the S&P 500's 70.41% return. This suggests that despite short-term gains, the overall valuation context remains unfavorable.