Is Arcimoto, Inc. overvalued or undervalued?

As of 11 June 2020, Arcimoto, Inc. has moved from a grade of "does not qualify" to "risky," indicating a significant change in its valuation outlook. The company is currently considered overvalued given its P/E ratio of 0.00, which is not only below the industry average but also reflects a negative EV to EBIT of -0.40 and an EV to EBITDA of -0.45. With a return on capital employed (ROCE) of -136.56% and return on equity (ROE) of -515.83%, the financial health of the company raises concerns.
In comparison to peers, Arcimoto's valuation metrics are notably weaker. For instance, Faraday Future Intelligent Electric, Inc. has a P/E ratio of -0.8388, while Electrameccanica Vehicles Corp. also falls into the "risky" category with an EV to EBITDA of 0.9079. The overall peer comparison suggests that Arcimoto is not positioned favorably within its industry. Given these factors, Arcimoto, Inc. appears to be overvalued in the current market context.