Is Enovix Corp. overvalued or undervalued?

As of 10 August 2022, the valuation grade for Enovix Corp. has moved from does not qualify to risky. Based on the analysis, the company appears to be overvalued given its significant negative financial metrics. The P/E ratio is not applicable due to losses, while the Price to Book Value stands at 6.79, and the EV to Sales is alarmingly high at 66.68. Additionally, the ROCE is at -104.05%, indicating severe inefficiencies in capital utilization.
When comparing Enovix to its peers, Lumentum Holdings, Inc. has a P/E ratio of -15.94 and an EV to EBITDA of -593.05, while Bloom Energy Corp. shows a stark contrast with a P/E of 145.06 and an EV to EBITDA of 36.11, highlighting the disparity in valuation within the sector. Furthermore, Enovix's recent stock performance has lagged significantly behind the S&P 500, with a year-to-date return of -25.39% compared to the index's 2.44%, reinforcing the notion that the stock may be overvalued in its current state.