Is Shimmick Corp. overvalued or undervalued?

As of 28 March 2024, the valuation grade for Shimmick Corp. has moved from expensive to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued given its negative valuation ratios, including a Price to Book Value of -1.22 and an EV to EBITDA of -0.94, which suggest significant financial distress. In comparison, its peer, which has a valuation grade of risky, shows a P/E ratio of -3.7771 and an EV to EBITDA of -3.6369, highlighting that Shimmick Corp. is underperforming relative to its peers.
The stock's recent performance has been mixed, with a year-to-date return of 10.04%, which lags behind the S&P 500's return of 12.22% for the same period. However, over the longer term, Shimmick Corp. has seen a staggering decline of 88.59% over three, five, and ten years, contrasting sharply with the S&P 500's substantial gains. This further reinforces the view that Shimmick Corp. is overvalued in its current state.