Is Loop Industries, Inc. overvalued or undervalued?

As of 9 April 2025, Loop Industries, Inc. has moved from a grade of "does not qualify" to "risky." The company is currently overvalued based on its financial metrics. The P/E ratio is not applicable due to losses, while the Price to Book Value stands at an extremely high 82.55. Additionally, the EV to EBITDA ratio is -13.97, indicating negative earnings before interest, taxes, depreciation, and amortization, which further complicates the valuation.
In comparison to peers, Loop Industries has a significantly lower EV to EBITDA ratio than Proto Labs, Inc. at 13.86 and Valhi, Inc. at 2.94, both of which are in more favorable positions. The company's recent performance has been lackluster, with a 1-year return of -31.11% compared to the S&P 500's 10.26%, reinforcing the notion that it is overvalued in the current market context.