Is iRobot Corp. overvalued or undervalued?

As of 4 May 2022, the valuation grade for iRobot Corp. has moved from expensive to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued based on its negative valuation ratios, including a Price to Book Value of -123.18, an EV to EBIT of -1.67, and an EV to Sales of 0.39. These metrics suggest that the company is struggling financially, particularly in comparison to peers such as Turtle Beach Corp., which has a fair P/E ratio of 18.60, and Hamilton Beach Brands Holding Co., with a fair EV to EBITDA of 5.49.
The stock has shown mixed performance against the S&P 500, with a notable 1-week return of 21.49%, significantly outperforming the index's 1.05%. However, over longer periods, the company has underperformed, with a year-to-date return of -43.10% compared to the S&P 500's 12.22%. This trend reinforces the notion that iRobot Corp. is currently overvalued given its financial instability and poor long-term performance.