Is Microvast Holdings, Inc. overvalued or undervalued?

As of 9 November 2020, the valuation grade for Microvast Holdings, Inc. changed from does not qualify to risky. The company appears to be overvalued based on its high P/E ratio of 109, compared to the industry average, and a PEG ratio of 0.98, which suggests that growth expectations are not being met by current earnings. Additionally, the EV to EBITDA ratio stands at 30.83, indicating a significant premium over earnings before interest, taxes, depreciation, and amortization.
In terms of peer comparison, AZZ, Inc. has a P/E ratio of 13.06, while Powell Industries, Inc. shows a P/E of 19.99, both of which are considerably lower than Microvast's valuation metrics. The company has demonstrated strong short-term performance, with a 1-year return of 910.28% compared to the S&P 500's 17.14%, but this may not be sustainable given its current valuation metrics. Overall, the high valuation ratios and the risky grade suggest that Microvast Holdings, Inc. is overvalued.