Is Origin Materials, Inc. overvalued or undervalued?

As of 14 August 2024, the valuation grade for Origin Materials, Inc. has moved from attractive to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued, given its negative performance metrics. Key ratios include a Price to Book Value of 0.22, an EV to EBITDA of 0.17, and an ROE of -20.31%.
In comparison to peers, Origin Materials, Inc. shows a stark contrast to Valhi, Inc., which has a P/E of 2.64 and an EV to EBITDA of 2.94, highlighting the latter's stronger valuation position. Other risky peers like Gevo, Inc. and Rayonier Advanced Materials, Inc. further emphasize the challenges faced by Origin, with EV to EBITDA ratios of -7.18 and 4.57, respectively. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -66.8% compared to the index's 2.44%, reinforcing the notion of overvaluation.