Is Phoenix Motor, Inc. overvalued or undervalued?

As of 30 May 2025, the valuation grade for Phoenix Motor, Inc. has moved from very attractive to attractive, indicating a shift in the perception of its value. The company is currently considered undervalued, especially given its P/E ratio of 2, which is significantly lower than the industry average, and a PEG ratio of 0.02, suggesting strong growth potential relative to its price. Additionally, the EV to Sales ratio stands at 0.44, further supporting the undervaluation thesis.
In comparison to its peers, Phoenix Motor, Inc. shows a more favorable valuation with a P/E of 1.93, while Kandi Technologies Group, Inc. has a P/E of -3.15, and Electrameccanica Vehicles Corp. has a P/E of -0.58, both indicating greater risk. The company's ROE of 48.27% is also noteworthy, reflecting strong profitability despite the challenges it faces, including a significant decline in stock performance relative to the S&P 500 over the past year. Overall, these metrics suggest that Phoenix Motor, Inc. is undervalued in the current market context.