Is Ouster, Inc. overvalued or undervalued?

As of 9 March 2021, the valuation grade for Ouster, Inc. moved from does not qualify to risky, indicating a shift in perception but still reflecting significant concerns about its financial health. The company appears overvalued given its high Price to Book Value of 4.67 and negative EV to EBITDA of -7.05, alongside a troubling ROCE of -1623.55%. In comparison, peers such as Applied Optoelectronics, Inc. and nLIGHT, Inc. exhibit even worse P/E ratios of -33.68 and -33.30, respectively, but Ouster's ratios suggest it is still not a compelling investment.
Despite its recent stock performance, with a year-to-date return of 184.12% compared to the S&P 500's 12.22%, the underlying financial metrics raise red flags about sustainability. Overall, Ouster, Inc. is assessed as overvalued based on its current financial ratios and market position.