Is Universal Electronics, Inc. overvalued or undervalued?

As of 4 May 2023, Universal Electronics, Inc. has moved from a fair to risky valuation grade, indicating a significant deterioration in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a P/E ratio that is not applicable due to losses, a Price to Book Value of 1.11, and an EV to EBITDA of 14.49. The negative ROCE of -3.47% and ROE of -9.36% further underscore the company's struggles.
In comparison to its peers, Universal Electronics, Inc. has a notably low EV to EBITDA ratio of 14.49, while IMAX Corp. stands at 14.11 and Turtle Beach Corp. at 6.97, highlighting the relative overvaluation of Universal Electronics. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date decline of 36.73% compared to the index's modest gain of 2.44%. Overall, the combination of poor financial ratios and negative peer comparisons suggests that Universal Electronics, Inc. is overvalued in the current market.