Is LiveWire Group, Inc. overvalued or undervalued?

As of 2 February 2023, the valuation grade for LiveWire Group, Inc. has moved from does not qualify to risky, indicating a shift in perception regarding its financial health and investment potential. The company is currently considered overvalued, particularly given its P/E ratio is not applicable due to losses, and it shows a Price to Book Value of 12.53. Additionally, the EV to EBITDA stands at -21.32, and the ROCE is a concerning -128.16%, highlighting significant operational inefficiencies.
In comparison to its peers, LiveWire's EV to EBITDA ratio of -21.32 contrasts sharply with Acushnet Holdings Corp. at 14.65 and Polaris Inc. at 9.20, both of which are in a more favorable position. The market has reacted variably, with LiveWire's stock returning 411.88% over the past month, significantly outperforming the S&P 500's 3.83% return, yet it has still declined 28.39% over the past year. This volatility underscores the risks associated with investing in LiveWire Group, reinforcing the conclusion that it is currently overvalued.