Is MagnaChip Semiconductor Corp. overvalued or undervalued?

As of 16 February 2023, the valuation grade for MagnaChip Semiconductor Corp. has moved from fair to risky, indicating a shift in the company's perceived financial health. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.62, an EV to EBIT of -1.57, and an EV to EBITDA of -2.53, all suggesting significant financial distress.
In comparison to peers, MagnaChip's performance appears weak; for instance, Navitas Semiconductor Corp. has a much lower EV to EBITDA of -12.47, while SMART Global Holdings, Inc. shows a positive P/E ratio of 37.17, highlighting a stark contrast in valuation. Furthermore, MagnaChip's recent stock performance has lagged behind the S&P 500, with a one-year return of -23.39% compared to the S&P 500's 10.26%, reinforcing the notion that the stock is currently overvalued.