Is Purecycle Technologies, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Purecycle Technologies, Inc. has moved from does not qualify to risky. The company is currently overvalued based on its financial metrics. Key ratios include a Price to Book Value of 7.45, an EV to EBIT of -14.63, and an EV to EBITDA of -18.75, indicating significant financial distress. In comparison to its peers, Purecycle's P/E ratio is not applicable due to losses, while Enviri Corp. has a P/E of -18.60 and Quest Resource Holding Corp. has a P/E of -2.50, both reflecting similar challenges in the industry. Despite a strong recent performance with a 1-year stock return of 125.26% compared to the S&P 500's 10.26%, the underlying financial ratios suggest that Purecycle Technologies is not a sound investment at its current price of 13.11.