Is AYRO, Inc. overvalued or undervalued?

As of 20 November 2023, AYRO, Inc. has moved from a valuation grade of risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently considered overvalued, primarily due to its negative P/E ratio and poor performance metrics. Key ratios include a Price to Book Value of 0.56, an EV to EBIT of 0.80, and an EV to EBITDA of 0.90, which reflect the company's struggles in generating positive earnings.
In comparison to its peers, AYRO, Inc. shows a stark contrast with Titan International, Inc. and Cooper-Standard Holdings, Inc., both categorized as risky with P/E ratios of -39.97 and -15.14, respectively. Meanwhile, China Yuchai International Ltd. stands out as attractive with a P/E ratio of 8.31, highlighting the disparity in valuation within the sector. Additionally, AYRO's stock has significantly underperformed against the S&P 500, with a year-to-date return of -42.20% compared to the index's 2.44%, reinforcing the notion that the company is overvalued in its current state.