Is Faraday Future Intelligent Electric, Inc. overvalued or undervalued?

As of 6 November 2024, the valuation grade for Faraday Future Intelligent Electric, Inc. has moved from risky to does not qualify. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.87, an EV to EBIT of -0.90, and an EV to EBITDA of -1.66, all indicating significant financial distress and a lack of profitability.
In comparison to its peers, Faraday Future's valuation metrics are notably poor. For instance, Kandi Technologies Group, Inc. has a P/E of -3.1540 and an EV to EBITDA of -1.1454, while Electrameccanica Vehicles Corp. shows a P/E of -0.5793 and an EV to EBITDA of 0.9079. These comparisons highlight that Faraday Future's financial performance is not only lacking but also worse than some of its peers in the electric vehicle sector. Additionally, the company's stock has underperformed significantly, with a year-to-date return of -43.21%, contrasting sharply with the S&P 500's 2.44% gain.