Is Aspen Aerogels, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Aspen Aerogels, Inc. has moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, as evidenced by its P/E ratio of 13, which is significantly lower than the peer average of 29.81 for Montauk Renewables, Inc. Additionally, Aspen's EV to EBITDA ratio stands at 6.03, while its peers show higher valuations, further supporting the notion of overvaluation. The PEG ratio of 0.06 also suggests that the stock may not be justified at its current price.
In comparison to its peers, Montauk Renewables, Inc. has a P/E of 50.38, indicating a much higher market valuation relative to earnings, while Enviva, Inc. is also struggling with a risky valuation. Over the past year, Aspen Aerogels has seen a return of -71.95%, starkly contrasting with the S&P 500's return of 17.14%, highlighting the company's underperformance in the market. This combination of valuation ratios and poor stock performance suggests that Aspen Aerogels, Inc. is currently overvalued.