Is Hyliion Holdings Corp. overvalued or undervalued?

As of 25 February 2025, the valuation grade for Hyliion Holdings Corp. has moved from does not qualify to risky, indicating increased scrutiny regarding its financial health. The company is currently considered overvalued based on its financial metrics and peer comparisons. Key ratios include a Price to Book Value of 1.21, an EV to EBIT of -2.41, and an EV to Sales ratio of 78.33, all of which suggest significant challenges in profitability and valuation.
In comparison to its peers, Hyliion's valuation appears unfavorable. For instance, PHINIA, Inc. has a P/E ratio of 18.52 and an EV to EBITDA of 5.17, categorizing it as very expensive, while Titan International, Inc. is also classified as risky with a P/E of -39.97 and an EV to EBITDA of 11.83. Additionally, Hyliion's recent stock performance has lagged behind the S&P 500, with a year-to-date decline of 45.98% compared to a modest gain of 2.44% for the index. This further reinforces the notion that Hyliion Holdings Corp. is overvalued in the current market landscape.