Is Kandi Technologies Group, Inc. overvalued or undervalued?

As of 16 August 2024, the valuation grade for Kandi Technologies Group, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a price-to-book value of 0.28 and an EV to EBITDA ratio of -1.20, both of which highlight the challenges the company faces in generating positive returns. Additionally, the return on capital employed (ROCE) stands at -14.72%, further underscoring the company's struggles.
In comparison to peers, Kandi Technologies is lagging significantly behind companies like REV Group, Inc., which has a P/E ratio of 15.71 and an EV to EBITDA of 12.67, and Blue Bird Corp., with a P/E of 12.89 and an EV to EBITDA of 9.21. These comparisons illustrate that Kandi is not only underperforming but also carries a higher risk profile. The recent stock performance has been poor, with a one-year return of -39.34% compared to the S&P 500's gain of 10.26%, reinforcing the notion that Kandi Technologies is currently overvalued.