Is AEye, Inc. overvalued or undervalued?

As of 14 May 2024, AEye, Inc. has moved from a valuation grade of risky to does not qualify, indicating a significant downgrade in its investment attractiveness. The company is currently considered overvalued given its financial metrics, including a Price to Book Value of 0.87 and an EV to EBITDA ratio of 0.23, which are not favorable for a viable investment. The company's ROCE stands at an impressive 613.41%, but this is overshadowed by a negative ROE of -195.19%, highlighting the challenges it faces in generating shareholder returns.
In comparison to its peers, AEye, Inc. has a P/E ratio of -0.4638, while Satixfy Communications Ltd. and Intevac, Inc. have P/E ratios of -6.3907 and -3.8609, respectively, indicating that AEye is not the worst performer but still lacks a solid valuation foundation. The stock has underperformed significantly against the S&P 500, with a year-to-date return of -41.72% compared to the index's 2.44%. Overall, AEye, Inc. appears to be overvalued given its current financial ratios and performance metrics.