Is Aeva Technologies, Inc. overvalued or undervalued?

As of 12 August 2021, the valuation grade for Aeva Technologies, Inc. moved from does not qualify to risky, indicating increased concerns regarding its financial health. The company appears to be overvalued given its significant negative ratios, including a Price to Book Value of 16.71 and an EV to Sales ratio of 103.78, which suggest that investors are paying a premium for the stock despite its poor performance metrics. Additionally, the company's ROE stands at a staggering -208.46%, reflecting severe inefficiencies in generating returns for shareholders.
In comparison with peers, Aeva Technologies, Inc. has a P/E ratio of -3.55, while Applied Optoelectronics, Inc. and Ouster, Inc. have P/E ratios of -33.68 and -17.79, respectively, indicating that Aeva is not alone in facing valuation challenges within its industry. Despite its recent stock performance, which has outpaced the S&P 500 with a YTD return of 260.21% compared to the index's 12.22%, the underlying financial metrics suggest that the stock is overvalued and may not sustain such high returns in the long term.