Is New Fortress Energy, Inc. overvalued or undervalued?

As of 3 March 2025, the valuation grade for New Fortress Energy, Inc. has moved from expensive to risky, indicating a shift towards a more concerning financial outlook. The company appears to be overvalued, particularly given its significant losses reflected in the P/E ratio, which is not applicable, and a Price to Book Value of just 0.47. Additionally, the EV to EBITDA stands at 17.22, and the EV to Sales ratio is quite high at 4.34, suggesting that the market may be pricing in excessive expectations for future growth.
In comparison to peers, New Fortress Energy's valuation metrics are notably weaker; for instance, its peer has an EV to EBITDA of 19.70, which is higher, indicating that the market may be valuing that competitor more favorably despite the overall industry challenges. The company has also faced substantial negative returns, with a year-to-date decline of 83.86%, compared to a 12.22% gain in the S&P 500, highlighting the stark underperformance relative to the broader market.