Is iRobot Corp. overvalued or undervalued?

As of 4 May 2022, the valuation grade for iRobot Corp. moved from very expensive to risky, indicating a significant shift in its market perception. The company is currently considered overvalued, with a price to book value of -123.18 and an EV to EBITDA ratio of -1.92, both of which highlight its financial struggles. Additionally, the return on capital employed (ROCE) stands at a troubling -122.30%, further emphasizing the company's challenges in generating returns.
In comparison to its peers, iRobot Corp. exhibits a notably negative P/E ratio of -0.5707, while IMAX Corp. is classified as very expensive with a P/E of 37.68, and Hamilton Beach Brands Holding Co. is fairly valued with a P/E of 6.38. The stark contrast in valuation metrics underscores iRobot's precarious position within its industry. Furthermore, the company's recent stock performance has been dismal, with a year-to-date return of -59.48%, significantly lagging behind the S&P 500's 2.44% return, reinforcing the notion of overvaluation amidst ongoing operational difficulties.