Is Corsair Gaming, Inc. overvalued or undervalued?

Jun 25 2025 09:19 AM IST
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As of May 7, 2024, Corsair Gaming, Inc. is considered overvalued and risky due to its negative ROE of -15.38%, high Price to Book Value of 1.60, and unfavorable comparisons to peers, despite a year-to-date return of 37.07% that underperformed the S&P 500's 10.26%.
As of 7 May 2024, the valuation grade for Corsair Gaming, Inc. has moved from very expensive to risky, indicating a significant shift in its market perception. The company is currently assessed as overvalued given its financial metrics, including a Price to Book Value of 1.60 and an EV to Sales ratio of 0.77, which suggest that the market is pricing the stock higher than its fundamental value. Notably, the company's ROE stands at -15.38%, reflecting ongoing losses and inefficiencies.

In comparison to peers, Corsair's valuation appears unfavorable; for instance, a comparable company has a P/E of -10.28 and an EV to EBITDA of 98.11, which highlights the challenges Corsair faces in generating positive earnings. Additionally, while Corsair's stock has seen a YTD return of 37.07%, it has underperformed against the S&P 500 over the past year, which returned 10.26%. Overall, Corsair Gaming, Inc. is deemed overvalued based on its current financial ratios and peer comparisons.
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