Is Nikola Corp. overvalued or undervalued?
As of May 5, 2022, Nikola Corp. is considered a risky investment due to its overvaluation and poor financial metrics, including a Price to Book Value of 0.02 and a year-to-date stock decline of 94.87%, compared to a 2.44% increase in the S&P 500.
As of 5 May 2022, Nikola Corp. has moved from a grade of "does not qualify" to "risky." The company is currently overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.02, an EV to EBITDA of -0.25, and a ROCE of -108.85%. In comparison to peers, Fisker, Inc. has a P/E ratio of -0.0017 and an EV to EBITDA of -1.6831, indicating that Nikola's valuation is less favorable. The significant decline in stock performance, with a year-to-date drop of 94.87% compared to a 2.44% increase in the S&P 500, reinforces the notion that Nikola Corp. is not a sound investment at its current price level.
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