Is Microvast Holdings, Inc. overvalued or undervalued?

As of 9 November 2020, the valuation grade for Microvast Holdings, Inc. moved from does not qualify to risky. The company appears to be overvalued based on its current financial ratios. The P/E ratio stands at 109, significantly higher than the peer average, while the EV to EBITDA ratio is at 30.83. Additionally, the PEG ratio is 0.98, suggesting that the growth expectations may not justify the high valuation.
In comparison to its peers, Thermon Group Holdings, Inc. has a P/E ratio of 17.02, and Steel Partners Holdings LP shows a P/E of 5.40, both indicating a more favorable valuation. The low return on capital employed (ROCE) of 2.54% and return on equity (ROE) of 2.59% further reinforce the notion that Microvast is not generating sufficient returns relative to its valuation. Despite a strong one-year stock return of 759.97%, the overall metrics suggest that Microvast Holdings, Inc. is overvalued in the current market environment.