Is Phoenix Motor, Inc. overvalued or undervalued?

As of 27 June 2025, the valuation grade for Phoenix Motor, Inc. has moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued, given its P/E ratio of 2, which is significantly lower than the industry average, and an EV to EBITDA ratio of -0.57, suggesting negative earnings before interest, taxes, depreciation, and amortization. Additionally, the PEG ratio stands at 0.02, indicating that the stock is not only overvalued but also has poor growth prospects.
In comparison to its peers, Phoenix Motor's P/E of 0.5706 is higher than Kandi Technologies Group, Inc.'s P/E of -4.4335 and Electrameccanica Vehicles Corp.'s P/E of -0.5793, both of which also reflect risky valuations. The company's recent stock performance has been disappointing, with a year-to-date return of -46.67%, contrasting sharply with the S&P 500's positive return of 12.22% over the same period, further reinforcing the notion of overvaluation.