Is Clearway Energy, Inc. overvalued or undervalued?

As of 22 February 2024, the valuation grade for Clearway Energy, Inc. has moved from very attractive to risky. This change indicates that the company is currently overvalued. Key financial ratios highlight this concern, with a Price to Book Value of 3.14, an EV to EBIT of 50.24, and a negative ROE of -4.10%.
When comparing Clearway to its peers, Atlantica Sustainable Infrastructure Plc stands out with a P/E ratio of 1806.40 and an EV to EBITDA of 16.41, reflecting a more favorable valuation. In contrast, Sunrun, Inc. is also categorized as risky with a P/E of -0.95 and an EV to EBITDA of 61.68, further emphasizing the challenges faced by Clearway. Additionally, while Clearway has shown a strong YTD return of 21.42%, this is overshadowed by its long-term performance, which has lagged behind the S&P 500 over the past three and five years.