Is Pixelworks, Inc. overvalued or undervalued?

As of 7 November 2017, the valuation grade for Pixelworks, Inc. moved from fair to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued given its negative P/E ratio and troubling metrics such as a Price to Book Value of -1.99 and an EV to EBITDA of -0.58. These figures suggest that the company is not generating sufficient earnings relative to its valuation, raising concerns about its financial health.
In comparison to its peers, Pixelworks, Inc. shows a less favorable position, with its EV to EBIT ratio at -0.52, while competitors like Transphorm, Inc. and Kopin Corp. exhibit even more negative ratios of -10.94 and -16.90, respectively. This highlights that while Pixelworks is facing challenges, it is not alone in its struggles within the industry. Overall, the combination of negative ratios and a risky valuation grade indicates that Pixelworks, Inc. is overvalued in the current market context.