Is Owlet, Inc. overvalued or undervalued?

As of 16 August 2021, Owlet, Inc. has moved from a grade of "does not qualify" to "risky," indicating a significant downgrade in its valuation outlook. The company is currently considered overvalued, given its negative financial ratios, including a P/E ratio of NA due to losses, a Price to Book Value of -8.48, and an EV to EBITDA of -13.85. These metrics highlight the company's struggles, particularly in generating positive returns on capital.
In comparison to its peers, Owlet's valuation stands out negatively; for instance, IMAX Corp. is categorized as very expensive with a P/E of 37.68, while Turtle Beach Corp. is deemed expensive with a P/E of 14.04. Additionally, Owlet's recent stock performance has outpaced the S&P 500, with a year-to-date return of 67.19% compared to the index's 2.44%. However, the overall financial health and valuation metrics suggest that Owlet, Inc. is not a sound investment at its current price of $7.44.