Is Smith Micro Software, Inc. overvalued or undervalued?

As of 5 May 2021, the valuation grade for Smith Micro Software, Inc. moved from expensive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued, with a Price to Book Value of 0.48 and negative EV to EBITDA and EV to EBIT ratios of -0.95 and -0.72, respectively. Additionally, the Return on Capital Employed (ROCE) stands at a troubling -64.87%, further highlighting the company's struggles.
In comparison to its peers, Smith Micro Software's EV to EBITDA ratio of -0.95 is notably better than Spire Global, Inc. at -8.2383, but significantly worse than AdTheorent Holding Co., Inc., which has a positive EV to EBITDA of 40.0886. The company's stock has underperformed relative to the S&P 500, with a year-to-date return of -41.13% compared to the index's 12.22%, reinforcing the notion of its overvaluation in the current market context.