Is Energy Vault Holdings, Inc. overvalued or undervalued?

As of 16 May 2022, the valuation grade for Energy Vault Holdings, Inc. has moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company is currently deemed overvalued, given its negative P/E ratio and alarming return metrics. Key ratios include a Price to Book Value of 1.29, an EV to Sales ratio of 2.69, and a ROCE of -133.36%, all of which suggest that the company is struggling to generate value for shareholders.
In comparison to its peers, Energy Vault's valuation metrics are starkly unfavorable. For instance, Microvast Holdings, Inc. has a P/E ratio of 120.82, while Thermon Group Holdings, Inc. boasts a more reasonable P/E of 17.02. The stark contrast in these ratios highlights the challenges Energy Vault faces in the market. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -66.17% compared to the S&P's 2.44%. This further reinforces the notion that Energy Vault Holdings, Inc. is overvalued in its current state.