Is Loop Industries, Inc. overvalued or undervalued?

As of 9 April 2025, the valuation grade for Loop Industries, Inc. has moved from does not qualify to risky. The company is considered overvalued given its significant negative financial metrics. The Price to Book Value stands at 82.55, while the EV to EBITDA is -13.97, and the ROE is an alarming -659.80%.
In comparison to peers, Valhi, Inc. is rated attractive with a P/E ratio of 3.39, while Rayonier Advanced Materials, Inc. and Gevo, Inc. both carry risky valuations with P/E ratios of -1.04 and -8.19, respectively. The lack of positive returns and the overall financial instability reinforce the overvaluation narrative for Loop Industries, Inc. Although specific return data is not available, the absence of positive returns compared to the S&P 500 suggests a challenging investment outlook.