Is ESGEN Acquisition Corp. overvalued or undervalued?

As of 9 November 2023, the valuation grade for ESGEN Acquisition Corp. has moved from does not qualify to risky, indicating increased concerns regarding its financial health. The company is currently assessed as overvalued given its negative financial ratios, including a P/E ratio of -8.73 and an EV to EBITDA of -10.00. Additionally, the price to book value stands at -0.70, reflecting significant challenges in generating positive equity returns.
In comparison to its peers, ESGEN Acquisition Corp. shows stark contrasts; for instance, Mountain Crest Acquisition Corp. IV has a fair valuation with a P/E ratio of 49.22, while Western Acquisition Ventures Corp. is rated very attractive with a P/E of 3.82. The negative returns of ESGEN, particularly a year-to-date decline of 11.95% compared to the S&P 500's gain of 2.44%, further reinforce the notion that the stock is overvalued in its current state.