Is Alternus Clean Energy, Inc. overvalued or undervalued?

As of 10 November 2023, the valuation grade for Alternus Clean Energy, Inc. has moved from does not qualify to risky, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued, particularly given its P/E ratio of -0.0378 and an EV to EBITDA ratio of -1.0406, which suggest that it is not generating positive earnings or cash flows relative to its enterprise value. Additionally, the PEG ratio is reported as 0.0, further underscoring the lack of growth prospects.
In comparison to its peers, Alternus Clean Energy, Inc. is notably underperforming, as indicated by its negative valuation metrics. For instance, while the industry may have more favorable ratios, Alternus's current valuation suggests it is not aligned with its peers in terms of financial health. The company's stock has suffered dramatically, with a year-to-date return of -99.36% compared to the S&P 500's positive return of 12.22%, reinforcing the notion that it is significantly overvalued in its current state.