Is EchoStar Corp. overvalued or undervalued?

As of 29 February 2024, EchoStar Corp. has moved from a fair to a risky valuation grade. The company appears to be overvalued based on its financial metrics, particularly given its negative P/E ratio and a Price to Book Value of only 0.25. Additionally, the EV to EBITDA ratio stands at 17.16, which is relatively high compared to its peers, indicating potential overvaluation.
In comparison to its peers, InterDigital, Inc. has a more favorable P/E ratio of 43.22 and an EV to EBITDA of 31.92, suggesting it is more attractively valued. Meanwhile, CommScope Holding Co., Inc. shows a risky valuation with an EV to EBITDA of 10.70, further emphasizing EchoStar's relative overvaluation. Notably, while EchoStar's stock has performed exceptionally well year-to-date with a return of 211.00%, this is contrasted by its recent one-week decline of 7.55% against a modest 1.05% gain in the S&P 500, highlighting volatility and potential concerns about sustainability.