Is Silicon Laboratories, Inc. overvalued or undervalued?

As of 7 February 2024, the valuation grade for Silicon Laboratories, Inc. has moved from very expensive to risky. The company is currently assessed as overvalued given its negative earnings and poor return metrics. Key ratios include a Price to Book Value of 3.86, an EV to EBIT of -26.72, and an EV to EBITDA of -40.70, indicating significant losses relative to its enterprise value.
In comparison to peers, Cirrus Logic, Inc. is rated attractive with a P/E of 15.99 and an EV to EBITDA of 10.25, while IPG Photonics Corp. is also rated risky with a P/E of -17.15 and an EV to EBITDA of 31.89. Silicon Laboratories' performance has been mixed, with a year-to-date return of 14.64% compared to the S&P 500's 2.44%, but its long-term returns have significantly lagged behind the index over three, five, and ten years.