Is GoPro, Inc. overvalued or undervalued?

As of 9 May 2023, the valuation grade for GoPro, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, particularly given its negative P/E ratio and concerning return metrics. Key ratios include a Price to Book Value of 1.35, an EV to Sales ratio of 0.27, and a ROCE of -55.27%, which highlight significant financial challenges.
In comparison to peers, Turtle Beach Corp. has a fair valuation with a P/E ratio of 18.60, while Traeger, Inc. is also considered risky with a P/E ratio of -6.26. GoPro's performance has been mixed; despite a strong YTD return of 133.03% compared to the S&P 500's 12.22%, its long-term returns over 3 years and 5 years are significantly negative at -55.04% and -36.82%, respectively, suggesting underlying issues that may not be adequately reflected in its current stock price.