Is Varex Imaging Corp. overvalued or undervalued?

As of 19 November 2024, Varex Imaging Corp. has moved from a fair to a risky valuation grade. The company is currently considered overvalued given its financial metrics and performance. Key ratios include a Price to Book Value of 0.64, an EV to EBIT of 13.05, and an EV to EBITDA of 8.64, which indicate potential concerns regarding profitability and valuation relative to its assets.
In comparison to its peers, Varex Imaging Corp. has a P/E ratio of -7.65, while MiMedx Group, Inc., which is rated fair, has a P/E of 21.59. Other risky peers like Paragon 28, Inc. and SI-BONE, Inc. show even more negative P/E ratios of -20.38 and -27.52, respectively. The company's recent stock performance has been poor, with a year-to-date return of -46.33%, significantly underperforming the S&P 500's 2.44% return, reinforcing the notion of overvaluation in the current market context.