Is MP Materials Corp. overvalued or undervalued?

As of 1 August 2024, the valuation grade for MP Materials Corp. has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued given its high Price to Book Value of 4.05 and negative EV to EBIT and EV to EBITDA ratios of -28.03 and -59.49, respectively. Additionally, the company's ROCE and ROE are both negative at -13.07% and -10.16%, which further supports the overvaluation stance.
In comparison to its peers, MP Materials Corp. has a markedly lower valuation profile, with a P/E ratio of -113.82 compared to Carpenter Technology Corp.'s P/E of 38.67 and ATI, Inc.'s P/E of 24.85. The company's recent stock performance has been impressive, with a year-to-date return of 362.37%, significantly outperforming the S&P 500's return of 12.22% over the same period. However, despite this strong performance, the underlying financial metrics suggest that the stock is overvalued.