Is Spel Semiconduct overvalued or undervalued?

As of 8 November 2023, the valuation grade for Spel Semiconduct has moved from very expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued given its significant negative PE ratio of -74.80 and a Price to Book Value of 19.18, which suggests that the market is pricing the stock at a premium relative to its book value. Additionally, the EV to EBIT ratio stands at -86.12, further highlighting the challenges in profitability.
In comparison to its peers, while specific peer valuation data is not available, the high EV to Sales ratio of 84.25 raises concerns about the sustainability of its current price level. The company's recent stock performance has been underwhelming, with a year-to-date return of -22.15%, contrasting sharply with the Sensex's positive return of 5.63% over the same period. Overall, these factors suggest that Spel Semiconduct is overvalued in the current market environment.