Is Identiv, Inc. overvalued or undervalued?

As of 3 August 2022, the valuation grade for Identiv, Inc. moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company is currently considered overvalued, given its negative P/E ratio and poor return metrics. Key ratios include a Price to Book Value of 0.53, an EV to EBIT of 1.86, and an EV to EBITDA of 2.02, all of which suggest significant challenges in generating profit.
In comparison to its peers, Identiv's valuation metrics are concerning. For instance, Ouster, Inc. has a P/E ratio of -10.73, while nLIGHT, Inc. stands at -18.42. Both companies are also classified as risky, highlighting a broader trend of underperformance in this sector. Additionally, Identiv's stock has underperformed relative to the S&P 500, with a year-to-date return of -14.21% compared to the index's modest gain of 2.44%.