Is NCR Voyix Corp. overvalued or undervalued?

As of 9 November 2023, the valuation grade for NCR Voyix Corp. has moved from expensive to risky, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 313, which is significantly higher than its peers, such as Cognex Corp. at 61.49 and Onto Innovation, Inc. at 20.49. Additionally, the EV to EBITDA ratio stands at 5.06, while the PEG ratio is at 3.07, suggesting that the stock may not be justified at its current price given its earnings growth prospects.
In comparison to its peers, NCR Voyix Corp. shows a concerning trend, especially with a return of -4.99% year-to-date, while the S&P 500 has gained 12.22% in the same period. This underperformance reinforces the notion that the stock is overvalued relative to its market performance and peer benchmarks. Overall, the combination of high valuation ratios and poor relative returns suggests that NCR Voyix Corp. is not a favorable investment at this time.