Is Ouster, Inc. overvalued or undervalued?

As of 9 March 2021, the valuation grade for Ouster, Inc. has moved from does not qualify to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued, with a Price to Book Value of 4.67 and an EV to Sales ratio of 5.29, both suggesting that investors are paying a premium for the stock relative to its underlying assets and revenues. Additionally, the EV to EBITDA ratio stands at -7.05, reflecting the company's loss-making status.
When compared to peers, Ouster's P/E ratio is notably negative at -10.73, while nLIGHT, Inc. has a P/E ratio of -18.42, and Applied Optoelectronics, Inc. shows a P/E of -15.50, all indicating that these companies are similarly struggling. Despite this, Ouster has outperformed the S&P 500 over various time frames, with a year-to-date return of 93.94% compared to the S&P 500's 2.44%. However, the overall financial metrics suggest that Ouster, Inc. is overvalued in the current market environment.