Is Kornit Digital Ltd. overvalued or undervalued?

As of 10 August 2022, the valuation grade for Kornit Digital Ltd. has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued, with a Price to Book Value of 1.42 and negative earnings reflected in its P/E ratio, which is not applicable due to losses. Additionally, the EV to EBITDA ratio stands at -32.64, further highlighting the challenges the company faces in generating positive cash flows.
In comparison to its peers, Kornit Digital Ltd. shows stark contrasts; for instance, ACM Research, Inc. has a P/E ratio of 12.14 and an EV to EBITDA of 8.25, categorizing it as attractive. In contrast, Kornit's negative EV to EBITDA and ROCE of -11.07% suggest it is struggling significantly compared to its industry. Furthermore, the company's stock has underperformed against the S&P 500, with a year-to-date return of -38.71% compared to the index's 2.44%, reinforcing the notion that Kornit Digital Ltd. is currently overvalued.