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

As of 8 August 2019, the valuation grade for CommScope Holding Co., Inc. moved from expensive to risky. The company appears to be overvalued given its current financial metrics. The P/E ratio stands at 5, while the EV to EBITDA ratio is 8.56, and the PEG ratio is notably low at 0.03, indicating potential overvaluation relative to growth expectations.
In comparison to its peers, InterDigital, Inc. has a much higher P/E ratio of 43.22 and an EV to EBITDA of 31.92, suggesting that CommScope is not only underperforming but also priced higher relative to its earnings potential. Other risky peers like ViaSat, Inc. and Calix, Inc. show negative P/E ratios, further emphasizing the challenges faced by CommScope in the current market. Despite a strong year-to-date return of 217.47%, which significantly outpaces the S&P 500's 12.22%, the overall valuation metrics suggest that the stock is overvalued.