Is Sonos, Inc. overvalued or undervalued?

As of 10 May 2023, the valuation grade for Sonos, Inc. has moved from very expensive to risky, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios highlight this concern, with a Price to Book Value of 3.20, an EV to EBITDA of 33.69, and a negative ROCE of -19.36%.
In comparison to peers, Advanced Energy Industries, Inc. has a P/E ratio of 41.62 and EV to EBITDA of 25.64, while Plexus Corp. shows a P/E of 45.10 and EV to EBITDA of 23.95, both indicating stronger valuations relative to Sonos. Additionally, Sonos has underperformed against the S&P 500, with a year-to-date return of -33.11% compared to the index's 2.44%, reinforcing the notion of its overvaluation in the current market context.