Is Arcimoto, Inc. overvalued or undervalued?

As of 8 July 2024, the valuation grade for Arcimoto, Inc. moved from risky to does not qualify, indicating a significant deterioration in its investment appeal. Based on the provided metrics, the company appears to be overvalued, particularly given its P/E ratio of 0.00, EV to EBIT of -0.40, and EV to EBITDA of -0.45, which highlight severe profitability issues.
In comparison to peers, Arcimoto's valuation ratios are notably poor; for instance, Faraday Future Intelligent Electric, Inc. has a P/E of -1.4501 and EV to EBITDA of -3.1126, while Ideanomics, Inc. shows a P/E of -0.0020 and EV to EBITDA of -0.3436. These comparisons reinforce the notion that Arcimoto is not only struggling but also lacks a competitive edge within its industry. Although specific return data is not available, the absence of positive returns against the S&P 500 further underscores the company's challenging position in the market.