Is E.C.D. Automotive Design, Inc. overvalued or undervalued?

As of 10 May 2023, the valuation grade for E.C.D. Automotive Design, Inc. has moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of -0.4518 and an EV to EBITDA of -3.8484, which are significantly negative compared to industry standards.
In comparison to its peers, E.C.D. Automotive Design, Inc. shows a stark contrast, as evidenced by the lack of a PEG ratio and the negative EV to EBITDA, suggesting that it is not performing well relative to its competitors. For instance, while E.C.D. has a risky valuation, other companies in the auto components and equipment sector maintain more stable ratios. Additionally, the company's stock has returned 350% year-to-date, which, while impressive, still lags behind the S&P 500's 12.22% return, reinforcing the notion that its current valuation may not be justified.