Is Corsair Gaming, Inc. overvalued or undervalued?

As of 7 May 2024, Corsair Gaming, Inc. has moved from a fair to a risky valuation grade. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 1.60, an EV to Sales ratio of 0.77, and a ROE of -15.38%. In comparison to its peers, Clearwater Analytics Holdings, Inc. shows a much more favorable P/E ratio of 12.49, while Zeta Global Holdings Corp. has a concerning EV to EBITDA of 86.43, indicating a challenging environment for Corsair.
Despite a strong year-to-date return of 31.47%, which outperformed the S&P 500's 12.22%, the company's long-term performance has been disappointing, with a 3-year return of -37.35% compared to the S&P 500's 70.41%. This suggests that while there may be short-term gains, the overall outlook for Corsair Gaming remains precarious.