Is Valens Semiconductor Ltd. overvalued or undervalued?

As of 12 November 2021, the valuation grade for Valens Semiconductor Ltd. changed from does not qualify to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued, given its negative P/E ratio and poor return metrics. Key ratios include a Price to Book Value of 1.80, an EV to EBITDA of -3.29, and a ROE of -26.68%.
In comparison to peers, Valens Semiconductor's P/E ratio of -6.1574 is worse than indie Semiconductor, Inc. at -5.7603 and CEVA, Inc. at -57.8847, highlighting its relative underperformance. Additionally, the company's year-to-date return of -25.77% significantly lags behind the S&P 500's 12.22%, reinforcing the notion of overvaluation amidst broader market gains.