Is Heliogen, Inc. overvalued or undervalued?

As of 21 May 2025, Heliogen, Inc. has moved from an attractive to a very attractive valuation grade. The company appears to be undervalued based on its current metrics. Key ratios include a Price to Book Value of 0.44, an EV to EBIT of -0.40, and an ROE of 214.83%, which indicates strong profitability despite negative earnings.
In comparison to peers, Heliogen's P/E ratio stands at 0.2205, significantly lower than VSE Corp.'s P/E of 49.4099, which is deemed very expensive, and Ameresco, Inc.'s fair P/E of 12.7934. This suggests that Heliogen is trading at a substantial discount relative to its peers. Notably, while Heliogen has faced significant stock price declines in the short term, its long-term performance over the last five years shows an impressive return of 32,300%, contrasting sharply with the S&P 500's 92.42% return in the same period, reinforcing the potential for recovery and growth.