Is Valens Semiconductor Ltd. overvalued or undervalued?

As of 12 November 2021, the valuation grade for Valens Semiconductor Ltd. has moved from does not qualify to risky. Based on the analysis, the company appears to be overvalued. Key ratios indicate significant financial distress, with a Price to Book Value of 1.80, an EV to EBIT of -3.05, and a ROCE of -243.93%.
In comparison to its peers, Valens Semiconductor's P/E ratio is not applicable due to losses, while Navitas Semiconductor Corp. has a P/E of -11.59 and nLIGHT, Inc. has a P/E of -18.42, both reflecting similar risk profiles. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -19.23% compared to the index's 2.44%, reinforcing the view that Valens is currently overvalued in the market.