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 deterioration in its investment appeal. The company is currently considered overvalued given its negative financial metrics, including a Price to Book Value of 0.28 and an EV to Sales ratio of 0.42, which suggest that the market is not valuing the company's assets favorably. Additionally, the company's ROCE stands at -14.72% and ROE at -8.52%, further highlighting its struggles in generating returns.
In comparison to its peers, Kandi Technologies shows a stark contrast; for instance, Miller Industries, Inc. has a P/E ratio of 11.18, indicating a more favorable valuation. Other peers like Gogoro, Inc. and Hyzon Motors, Inc. also reflect risky valuations, but Kandi's metrics are particularly concerning. Over the past year, Kandi Technologies has underperformed against the S&P 500, with a return of -16.87% compared to the index's 17.14%, reinforcing the notion that the company is not only struggling but may also be overvalued in the current market context.