Is Battery Future Acquisition Corp. overvalued or undervalued?

As of 10 February 2025, the valuation grade for Battery Future Acquisition Corp. has moved from does not qualify to risky. The company appears to be overvalued based on its current metrics, particularly given its P/E ratio of 63, which is significantly higher than the negative P/E of its peer Atlantic Coastal Acquisition Corp. at 21.84. Additionally, the EV to Sales ratio stands at 38.41, indicating a high valuation relative to sales, while the EV to EBITDA is at -64.80, suggesting negative earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Battery Future Acquisition Corp. shows concerning figures, with a negative Price to Book Value of -13.00 and a negative ROCE due to negative capital employed. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -91.31% compared to the S&P 500's positive return of 12.22%. This stark contrast reinforces the view that the stock is overvalued in its current state.