Is Wolfspeed, Inc. overvalued or undervalued?

As of 24 January 2017, the valuation grade for Wolfspeed, Inc. moved from fair to risky, indicating a significant deterioration in its financial health. The company is currently overvalued, as evidenced by its Price to Book Value of 1.02 and negative EV to EBIT and EV to EBITDA ratios of -10.62 and -19.87, respectively. Additionally, the Return on Capital Employed (ROCE) stands at -9.43%, and the Return on Equity (ROE) is alarmingly low at -453.97%, suggesting severe operational inefficiencies.
In comparison to its peers, Wolfspeed, Inc. has a valuation marked as risky with a P/E ratio of -0.2201 and an EV to EBITDA of -36.2952, highlighting its struggles relative to the industry. Notably, while the stock saw a remarkable 30.85% return over the past week, it has significantly underperformed against the S&P 500 over longer periods, with a year-to-date return of -63.06% compared to the S&P 500's 12.22%. This stark contrast reinforces the conclusion that Wolfspeed, Inc. is currently overvalued.