Is Evolv Technologies Holdings, Inc. overvalued or undervalued?

As of 10 August 2022, the valuation grade for Evolv Technologies Holdings, Inc. moved from expensive to risky, indicating a deterioration in its valuation outlook. The company appears overvalued given its significant negative metrics, including a Price to Book Value of 7.48, an EV to EBIT of -12.20, and an EV to EBITDA of -16.75. In comparison, peers such as Nextracker, Inc. and Nova Ltd. have more favorable valuations with P/E ratios of 18.75 and 34.30, respectively, highlighting the disparity in market perception.
Despite its overvaluation, Evolv has demonstrated strong stock performance, with a year-to-date return of 106.58%, significantly outpacing the S&P 500's return of 12.22% during the same period. However, the underlying financial metrics suggest that the company's current valuation may not be sustainable in the long run.