Is Ichor Holdings Ltd. overvalued or undervalued?

As of 6 November 2023, the valuation grade for Ichor Holdings Ltd. has moved from expensive to risky, indicating a deteriorating outlook. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 0.99 and an EV to EBITDA ratio of 22.35, which suggests that investors are paying a premium relative to its earnings potential. Additionally, the negative ROE of -2.34% and ROCE of -0.70% further highlight the company's struggles in generating returns for shareholders.
In comparison to its peers, Ichor Holdings Ltd. has a significantly lower valuation with a P/E ratio of -31.41, while Energy Recovery, Inc. is fairly valued with a P/E of 31.92. Kornit Digital Ltd. also shows a risky valuation with a P/E of -74.31. The company's recent performance has been poor, with a year-to-date return of -44.07%, starkly contrasting with the S&P 500's positive return of 12.22% during the same period, reinforcing the notion that Ichor Holdings is currently overvalued.