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 shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.29 and an EV to Sales ratio of 2.69, which suggest that investors are paying a premium relative to its book value and sales. Additionally, the negative ROCE of -133.36% and ROE of -105.46% further highlight the company's struggles in generating returns.
In comparison to its peers, Energy Vault Holdings, Inc. has a P/E ratio of -2.3629, which is significantly lower than that of Allient, Inc. at 128.1584, indicating a stark contrast in valuation. Other risky peers like SES AI Corp. and GrafTech International Ltd. also reflect negative valuation metrics, with EV to EBITDA ratios of -2.0186 and -54.9228, respectively. Despite the company's impressive recent stock performance, with a 1-year return of 168.86% compared to the S&P 500's 17.14%, this does not mitigate the underlying valuation concerns.