Is Arbe Robotics Ltd. overvalued or undervalued?

As of 5 March 2025, the valuation grade for Arbe Robotics Ltd. has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently overvalued, as evidenced by its Price to Book Value of 2.75 and negative EV to EBIT and EV to EBITDA ratios of -3.06 and -3.09, respectively. Additionally, the Return on Capital Employed (ROCE) stands at a concerning -130.84%, while the Return on Equity (ROE) is also negative at -77.09%.
In comparison to its peers, Arbe Robotics Ltd. shows a stark contrast with NuScale Power Corp., which has a P/E ratio of -95.59, and American Superconductor Corp., which is relatively better at a P/E of 103.45. The company's performance has lagged significantly behind the S&P 500, with a year-to-date return of -20.43% compared to the index's 2.44%. Overall, the metrics suggest that Arbe Robotics Ltd. is not only overvalued but also struggling to establish a viable financial foundation.