Is NuScale Power Corp. overvalued or undervalued?

As of 10 August 2022, the valuation grade for NuScale Power Corp. has moved from does not qualify to risky, indicating increased concerns about its financial health. The company appears to be overvalued given its high valuation ratios, including a Price to Book Value of 13.88, an EV to Capital Employed of 52.09, and a troubling EV to EBITDA of -71.97. Compared to peers, NuScale's P/E ratio is notably negative at -82.91, while Microvast Holdings, Inc. has a P/E of 23.10, and Steel Partners Holdings LP, which is classified as attractive, has a P/E of 7.27.
In terms of performance, NuScale has significantly outperformed the S&P 500 over multiple periods, with a year-to-date return of 112.6% compared to the S&P 500's 12.22%. This strong performance may not be sustainable given the company's negative returns on capital and equity, suggesting that while the stock has performed well recently, its valuation metrics indicate it is overvalued in the current market context.