Is Canoo, Inc. overvalued or undervalued?

As of 14 August 2024, Canoo, Inc. has moved from a grade of "does not qualify" to "risky." The company is currently overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.01, an EV to EBITDA of -0.20, and a ROCE of -82.17%. These figures indicate significant financial distress and a lack of profitability.
In comparison to its peers, Canoo's valuation stands out negatively. For instance, REV Group, Inc. has an attractive P/E ratio of 15.71, while Blue Bird Corp. maintains a fair P/E of 12.89. Canoo's EV to Sales ratio of 20.97 further highlights its overvaluation relative to its industry peers. Additionally, the company's stock has dramatically underperformed against the S&P 500, with a year-to-date return of -89.49%, reinforcing the notion that the stock is overvalued in its current state.