Is Impinj, Inc. overvalued or undervalued?

As of 23 April 2025, the valuation grade for Impinj, Inc. has moved from attractive to risky, indicating a significant downgrade in its financial outlook. This suggests that the company is currently overvalued. Key ratios highlight the company's struggles, with a P/E ratio of NA due to losses, a Price to Book Value of 20.48, and an EV to EBITDA of 409.34, which is exceptionally high compared to industry norms.
In comparison to peers, Impinj's valuation metrics are concerning; for instance, SiTime Corp. has a P/E of -65.64 and an EV to EBITDA of -73.57, while Tower Semiconductor Ltd. is relatively fair with a P/E of 21.98 and an EV to EBITDA of 7.18. The stark contrast in these ratios underscores Impinj's challenging position in the market. Additionally, the company's stock has underperformed significantly over the past year, with a return of -28.63% compared to the S&P 500's 10.26%, further reinforcing the view that Impinj is overvalued at its current price of 106.34.