Is CBAK Energy Technology, Inc. overvalued or undervalued?

As of 19 May 2025, the valuation grade for CBAK Energy Technology, Inc. has moved from attractive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.78 and an EV to Sales ratio of 0.50, which suggest that despite a low valuation relative to its assets and sales, the underlying financial performance remains weak. Additionally, the EV to EBITDA ratio stands at 14.98, which is relatively high for a company in this sector, further reinforcing the notion of overvaluation.
In comparison to its peers, CBAK Energy Technology, Inc. has a significantly worse EV to EBITDA ratio than companies like SKYX Platforms Corp. at -4.9578 and Beam Global at -2.8970, both of which are also considered risky. This highlights the challenges faced by CBAK in achieving profitability relative to its competitors. Although specific return data is not available, the lack of positive returns compared to the S&P 500 reinforces the perception of the company being overvalued in the current market environment.