Is Movella Holdings, Inc. overvalued or undervalued?

As of 9 August 2023, the valuation grade for Movella Holdings, Inc. has moved from fair to risky, indicating a shift in perception regarding its financial health. The company is currently considered overvalued, especially given its troubling financial metrics. Key ratios include a Price to Book Value of 0.00, an EV to EBIT of -0.01, and a ROCE of -27.96%, all of which highlight significant operational challenges.
In comparison to its peers, Movella Holdings shows a stark contrast with Servotronics, Inc. having a P/E ratio of -125.8754 and CBAK Energy Technology, Inc. at -63.9716, both categorized as risky as well. This suggests that while Movella is in a difficult position, it is not alone in its struggles within the industry. Furthermore, the company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -88.0% compared to the S&P's 2.44%, reinforcing the notion of its overvaluation amidst ongoing losses.