Is Luminar Technologies, Inc. overvalued or undervalued?

As of 7 May 2021, Luminar Technologies, Inc. has moved from a grade of "does not qualify" to "risky," indicating a significant downgrade in its valuation outlook. The company is currently considered overvalued, especially given its negative financial metrics, including a Price to Book Value of -0.61 and an EV to EBITDA ratio of -1.54. Additionally, the Return on Capital Employed (ROCE) stands at an alarming -386.25%, reflecting severe inefficiencies in capital utilization.
In comparison to its peers, Luminar's valuation metrics are concerning; for instance, its EV to EBITDA ratio of -1.49 is indicative of its struggles relative to the industry. This is compounded by the fact that the company has experienced substantial declines in stock performance, with a year-to-date drop of 51.49% compared to a modest gain of 2.44% for the S&P 500. Overall, the combination of poor financial ratios and negative returns suggests that Luminar Technologies is not only overvalued but also poses significant risks for potential investors.