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 a deteriorating outlook. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 1.21 and an EV to Sales ratio of 78.33, which are significantly higher than peers like American Axle & Manufacturing Holdings, Inc. with a P/E of 9.51 and Cooper-Standard Holdings, Inc. with an EV to EBITDA of 7.37. Additionally, the company's ROCE stands at a concerning -59.46%, further underscoring its financial struggles.
In terms of stock performance, Hyliion has underperformed compared to the S&P 500 across multiple time frames, with a YTD return of -23.75% versus the S&P 500's 12.22%, and a staggering 5Y return of -96.02% compared to the index's 96.61%. This stark contrast in returns reinforces the notion that Hyliion is overvalued in its current state.