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 a shift towards greater concern regarding its financial health. Based on the available metrics, the company appears to be overvalued, particularly given its negative valuation ratios such as a Price to Book Value of -0.70, an EV to EBIT of -5.57, and an EV to EBITDA of -10.00.
In comparison to its peers, ESGEN Acquisition Corp. shows a stark contrast with Mountain Crest Acquisition Corp. IV, which has a P/E ratio of 49.22 and an EV to EBITDA of -34.09, reflecting a more stable valuation profile. Additionally, Western Acquisition Ventures Corp. is also categorized as risky but has a positive EV to EBITDA of 4.17, further highlighting ESGEN's relative weakness. The company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -72.29% compared to the index's gain of 12.22%, reinforcing the notion of overvaluation amidst its financial challenges.