Is EVgo, Inc. overvalued or undervalued?

As of 10 November 2021, the valuation grade for EVgo, Inc. has moved from does not qualify to risky, indicating a more cautious outlook on the company's financial health. The company is currently assessed as overvalued given its negative P/E ratio and troubling financial metrics. Key ratios include an EV to EBITDA of -20.25, a Price to Book Value of -33.39, and an EV to Sales ratio of 4.14, all of which suggest significant concerns about profitability and valuation.
When compared to peers, EVgo's valuation appears unfavorable, particularly against Build-A-Bear Workshop, Inc., which has a P/E of 12.51 and an EV to EBITDA of 7.89, and MarineMax, Inc., with a P/E of 21.85 and an EV to EBITDA of 10.33. These comparisons highlight that EVgo is not only struggling with negative returns but also lagging behind more attractive alternatives in the market. Additionally, while EVgo has seen a notable 86.7% return over the past year, this is juxtaposed against a backdrop of underperformance in the shorter term compared to the S&P 500, reinforcing the perception of overvaluation.