Is Innoviz Technologies Ltd. overvalued or undervalued?

As of 11 August 2021, the valuation grade for Innoviz Technologies Ltd. moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its negative performance metrics, including a Price to Book Value of 1.62, an EV to EBITDA ratio of -1.22, and a ROE of -71.69%. Comparatively, peers such as Solid Power, Inc. and SES AI Corp. also carry risky valuations with EV to EBITDA ratios of -5.7458 and -2.0186, respectively, but Innoviz's ratios suggest it is at a greater risk.
Despite its overvaluation, Innoviz has shown strong short-term returns, with a 1Y stock return of 166.87% compared to the S&P 500's 17.14%, although it has significantly underperformed over longer periods, with a 5Y return of -79.84% against the S&P 500's 96.61%. This mixed performance underscores the risks associated with investing in Innoviz Technologies Ltd. at its current valuation.