Is Comtech Telecommunications Corp. overvalued or undervalued?

As of 10 March 2022, the valuation grade for Comtech Telecommunications Corp. moved from attractive to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued given its current financial metrics, with a Price to Book Value of 0.40 and an EV to Sales ratio of 0.60, both suggesting that the market may not be pricing in the inherent risks adequately. Additionally, the company has a negative ROCE of -9.79% and a negative ROE of -3.99%, further highlighting its financial struggles.
In comparison to its peers, Comtech's valuation ratios are concerning; for instance, Arlo Technologies, Inc. has a P/E ratio of -90.81, while Digi International, Inc. shows a fair valuation with a P/E of 34.21. This places Comtech in a precarious position within its industry, as it struggles against peers that, despite their own risks, are managing to maintain more favorable valuations. The recent stock performance shows a 28.22% increase over the past week, which contrasts sharply with its year-to-date decline of -35.41%, reinforcing the notion that the stock may be overvalued relative to its fundamental performance.