Is ECARX Holdings, Inc. overvalued or undervalued?

As of 9 February 2023, the valuation grade for ECARX Holdings, Inc. has moved from does not qualify to risky. The company is currently considered overvalued given its negative financial metrics. Key ratios include a price-to-book value of -2.67, an EV to EBITDA of -9.14, and an EV to sales ratio of 1.03, all indicating significant financial distress.
In comparison to its peers, ECARX has a P/E ratio of -5.76, while Magnite, Inc. is fairly valued with a P/E of 78.19, and Adeia, Inc. is attractive with a P/E of 16.95. The stark contrast in valuation metrics highlights the challenges faced by ECARX. Additionally, the company's stock has underperformed the S&P 500 year-to-date, with a return of -20.38% compared to the index's 2.44%, further reinforcing its overvalued status.