Is Innoviz Technologies Ltd. overvalued or undervalued?

As of 11 August 2021, the valuation grade for Innoviz Technologies Ltd. has moved from does not qualify to risky, indicating increased scrutiny on its financial metrics. The company appears to be overvalued given its current financial ratios, including a Price to Book Value of 1.62 and an EV to Sales ratio of 2.69, despite being loss-making with a P/E ratio that is not applicable. The ROCE stands at a concerning -311.60%, and the ROE is also negative at -71.69%, which raises significant red flags regarding profitability.
When compared to peers, Innoviz's valuation metrics are starkly unfavorable. For instance, NuScale Power Corp. shows a P/E of -95.59 and an EV to EBITDA of -82.77, while Microvast Holdings, Inc. has a P/E of 120.82 and an EV to EBITDA of 33.67, indicating a wide range of valuations in the sector. The recent stock performance shows that Innoviz has outperformed the S&P 500 over the last week and month, but its year-to-date return of -20.24% suggests underlying challenges. Overall, Innoviz Technologies Ltd. is currently overvalued based on its financial ratios and peer comparisons.