Is Hawaiian Electric Industries, Inc. overvalued or undervalued?

As of 9 August 2024, the valuation grade for Hawaiian Electric Industries, Inc. has moved from very attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued, particularly given its troubling financial metrics, including a Price to Book Value of 1.17, an EV to EBIT of -1.94, and an EV to EBITDA of -2.28.
In comparison to its peers, Hawaiian Electric's valuation metrics are starkly unfavorable; for instance, IDACORP, Inc. has a P/E ratio of 21.71, while PNM Resources, Inc. shows a P/E of 30.05, both indicating a premium valuation relative to Hawaiian Electric's risky status. Notably, the company has underperformed against the S&P 500 over multiple periods, with a 3-year return of -68.17% compared to the S&P 500's 70.41%, reinforcing the notion of its overvaluation amidst a challenging market environment.