Is Li-Cycle Holdings Corp. overvalued or undervalued?

As of 27 January 2022, the valuation grade for Li-Cycle Holdings Corp. moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company is overvalued, given its troubling financial metrics, including a Price to Book Value of 0.01, an EV to EBITDA ratio of -3.41, and a ROE of -66.51%.
In comparison to peers, CrossAmerica Partners LP has a P/E ratio of 8.77 and an EV to EBITDA of 8.94, while BlueLinx Holdings, Inc. is categorized as very expensive with a P/E of 25.45. The stark contrast in valuation ratios highlights the challenges faced by Li-Cycle Holdings Corp. Furthermore, the company has experienced a year-to-date return of -100%, significantly underperforming the S&P 500's gain of 12.22%, reinforcing the notion of its overvaluation.