Is Universal Electronics, Inc. overvalued or undervalued?

As of 4 May 2023, the valuation grade for Universal Electronics, Inc. has moved from expensive to risky, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued, particularly given its negative P/E ratio and poor return metrics, including a ROCE of -3.47% and a ROE of -9.36%. The Price to Book Value stands at 1.11, while the EV to EBITDA ratio is 14.49, which is relatively high compared to peers.
In comparison to its peers, Turtle Beach Corp. has a fair valuation with a P/E of 18.60, while GoPro, Inc. is also risky with a P/E of -4.77. Universal Electronics' EV to Sales ratio of 0.44 suggests it is not generating sufficient revenue relative to its enterprise value. Over the past year, Universal Electronics has underperformed significantly, with a stock return of -45.48% compared to a 17.14% return for the S&P 500, reinforcing the notion that it is currently overvalued.