Is Motorcar Parts of America, Inc. overvalued or undervalued?

As of 9 November 2022, the valuation grade for Motorcar Parts of America, Inc. moved from fair to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued, given its current price of $10.15 compared to its financial ratios. The P/E ratio is not applicable due to losses, while the Price to Book Value stands at 0.89, and the EV to EBITDA is at 4.89, suggesting that the company is not generating sufficient earnings relative to its valuation.
In comparison to its peers, Motorcar Parts of America, Inc. has a notably low EV to EBITDA ratio of 4.89, while PHINIA, Inc. is considered very expensive with a PE of 18.52 and an EV to EBITDA of 5.17. Additionally, Titan International, Inc. is also categorized as risky with a PE of -39.97 and an EV to EBITDA of 11.83. The company's recent stock performance has been mixed, with a year-to-date return of 33.55%, significantly outperforming the S&P 500's return of 2.44% in the same period, but it has underperformed over longer time frames.