Is Envirotech Vehicles, Inc. overvalued or undervalued?

As of 11 November 2021, the valuation grade for Envirotech Vehicles, Inc. moved from does not qualify to risky, indicating increased concerns about its financial health. The company appears to be overvalued given its significant losses, as evidenced by a Price to Book Value of 0.56, an EV to EBIT ratio of -1.17, and an EV to EBITDA ratio of -1.23. Comparatively, peers such as Cooper-Standard Holdings, Inc. exhibit a P/E ratio of 19.94 and Motorcar Parts of America, Inc. with a P/E of 283.45, highlighting the stark contrast in valuation metrics.
The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -82.31% compared to the index's 12.22% gain, and a staggering -95.63% return over three years versus the S&P's 70.41%. This performance underscores the challenges facing Envirotech Vehicles, reinforcing the conclusion that the stock is overvalued in its current state.