Is FreightCar America, Inc. overvalued or undervalued?

As of 1 November 2017, the valuation grade for FreightCar America, Inc. moved from expensive to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued, particularly when considering its P/E ratio of 10, which is significantly lower than peer Douglas Dynamics, Inc. at 11.82 and The Manitowoc Co., Inc. at 8.08. Additionally, the EV to EBITDA ratio stands at 5.41, which is more favorable than Wabash National Corp.'s risky valuation with an EV to EBITDA of -19.47, yet still raises concerns given the overall context of negative capital employed and book value.
FreightCar America, Inc. has demonstrated strong returns over the longer term, with a 5-year return of 261.51% compared to the S&P 500's 96.61%, but its recent 1-year return of -7.51% against the S&P 500's 17.14% suggests a troubling trend that reinforces its overvaluation status. The company's negative price-to-book value of -1.65 further complicates its valuation picture, highlighting the risks associated with investing in this stock.