Is Dragonfly Energy Holdings Corp. overvalued or undervalued?

As of 29 March 2023, the valuation grade for Dragonfly Energy Holdings Corp. moved from does not qualify to risky. The company is currently considered overvalued. Key ratios indicate significant financial distress, including a Price to Book Value of -0.23, an EV to EBIT of -1.79, and an EV to EBITDA of -2.23, all of which suggest severe operational challenges.
In comparison to peers, Dragonfly Energy's P/E ratio is -0.0437, while American Superconductor Corp. stands at a fair valuation with a P/E of 103.45, highlighting the stark contrast in financial health. Other risky peers like Eos Energy Enterprises, Inc. and Innoviz Technologies Ltd. also show negative valuations, with P/E ratios of -5.56 and -2.83, respectively. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -92.49% compared to the index's 2.44%, reinforcing the notion of overvaluation.