Is Ooma, Inc. overvalued or undervalued?

As of 5 March 2024, Ooma, Inc. has moved from a fair to risky valuation grade. The company appears to be overvalued given its significant negative valuation metrics, including an EV to EBIT ratio of -113.38, a Price to Book Value of 4.16, and an EV to EBITDA of 34.75. Comparatively, peers such as Shenandoah Telecommunications Co. have an EV to EBITDA of 12.52, and Altice USA, Inc. has an EV to EBITDA of 7.94, indicating that Ooma is trading at a premium relative to its industry.
In terms of recent stock performance, Ooma has outperformed the S&P 500 over the past week and month, with returns of 2.27% and 11.99%, respectively, but it has underperformed on a year-to-date basis with a return of -6.97% compared to the S&P 500's 12.22%. Overall, the combination of negative financial ratios and relative overvaluation suggests that Ooma, Inc. is not a favorable investment at this time.