Is STAAR Surgical Co. overvalued or undervalued?

As of 11 February 2025, the valuation grade for STAAR Surgical Co. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued, particularly given its negative performance metrics. Key ratios include a Price to Book Value of 2.53, an EV to Sales ratio of 2.39, and a troubling ROCE of -51.79%. In comparison to peers, iRhythm Technologies has a P/E of -111.60, while Integer Holdings Corp. is considered very expensive with a P/E of 41.17.
The stock has underperformed relative to the S&P 500 across multiple periods, with a 1-year return of -13.48% compared to the index's 17.14%. This trend reinforces the notion that STAAR Surgical Co. is not only facing valuation challenges but also struggles in delivering shareholder returns.