Is CommScope Holding Co., Inc. overvalued or undervalued?

As of 8 August 2019, the valuation grade for CommScope Holding Co., Inc. moved from very expensive to risky. The company is currently considered undervalued based on its financial ratios. The P/E ratio stands at 5, significantly lower than the industry average, while the EV to EBITDA ratio is 8.56, indicating a potentially favorable valuation compared to peers. Additionally, the PEG ratio is remarkably low at 0.03, suggesting that the stock may be undervalued relative to its growth prospects.
In terms of peer comparison, CommScope's P/E ratio of 4.45 is lower than that of Digi International, Inc., which has a P/E of 34.21, and Harmonic, Inc., which stands at 12.68. This further supports the argument that CommScope is undervalued. Notably, the company has outperformed the S&P 500 with a remarkable 1-year return of 408.66%, compared to the S&P's 10.26%, reinforcing the valuation narrative.