Is Comtech Telecommunications Corp. overvalued or undervalued?

As of 10 March 2022, the valuation grade for Comtech Telecommunications Corp. moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 0.40, an EV to EBIT of -6.78, and an EV to Sales ratio of 0.60. In comparison to peers, Comtech's valuation ratios are significantly worse; for instance, Infinera Corp. has an EV to EBITDA of 325.0949, while Gilat Satellite Networks Ltd. shows a fair valuation with a P/E ratio of 26.9076.
The company's stock has underperformed relative to the S&P 500, with a year-to-date return of -37.91% compared to the index's 12.22%. This trend of underperformance is further highlighted by a staggering -83.88% return over the past five years, reinforcing the view that Comtech is currently overvalued in the market.