Is GrafTech International Ltd. overvalued or undervalued?

As of 14 February 2024, the valuation grade for GrafTech International Ltd. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company is currently overvalued, as evidenced by its negative Price to Book Value of -2.84 and an EV to EBITDA ratio of -119.84, which suggest significant financial distress. Additionally, the EV to Sales ratio stands at 2.28, further highlighting the challenges the company faces in generating revenue relative to its enterprise value.
In comparison to peers, GrafTech's valuation metrics are concerning; for instance, HollySys Automation Technologies Ltd. has a fair P/E ratio of 21.82 and an EV to EBITDA of 13.41, showcasing a stark contrast in financial performance. Despite a strong one-week stock return of 28.93% compared to the S&P 500's 1.05%, the year-to-date performance shows a decline of 26.59% against the S&P 500's gain of 12.22%, reinforcing the notion that GrafTech is struggling relative to broader market trends.