Is CBAK Energy Technology, Inc. overvalued or undervalued?

As of 19 May 2025, the valuation grade for CBAK Energy Technology, Inc. has moved from very attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a P/E ratio that is not applicable due to losses, a price-to-book value of 0.78, and an EV to EBITDA ratio of 14.98. Additionally, the return on capital employed (ROCE) stands at -3.76%, and the return on equity (ROE) is at -1.29%, both of which signal poor performance.
In comparison to its peers, CBAK Energy Technology's valuation is notably unfavorable; for instance, American Superconductor Corp. has a P/E of 103.45 and an EV to EBITDA of 101.71, while Ultralife Corp. is classified as expensive with a P/E of 32.47. The company's recent stock performance has been mixed, with a year-to-date return of 21.28%, outperforming the S&P 500's 2.44%, but it has underperformed over the past year with a decline of 18.57% compared to the index's gain of 10.26%. Overall, the company is assessed to be overvalued based on its current financial ratios and peer comparisons.