Is Local Bounti Corp. overvalued or undervalued?

As of 15 August 2022, the valuation grade for Local Bounti Corp. has moved from does not qualify to risky, indicating increased scrutiny regarding its financial health and performance. The company is currently assessed as overvalued given its negative financial metrics, including a Price to Book Value of -0.19 and an EV to EBITDA ratio of -11.04. Additionally, the Return on Capital Employed (ROCE) stands at -19.01%, further highlighting the challenges the company faces.
In comparison to its peers, Local Bounti Corp. has a P/E ratio of -0.1585, while Jaws Mustang Acquisition Corp. shows a significantly lower P/E of -253.1537, suggesting that Local Bounti is relatively better positioned among its peers despite still being in a risky category. The company's recent stock performance has shown a 10.29% increase over the past week, contrasting with a slight decline in the S&P 500, which underscores a potential short-term interest in the stock despite its overall overvaluation.