Is Riot Platforms, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for Riot Platforms, Inc. has moved from very attractive to risky, indicating a significant shift in the company's financial health and market perception. The company is currently considered overvalued, especially given its negative P/E ratio and poor return metrics, with a ROCE of -12.11% and ROE of -11.97%. The Price to Book Value stands at 1.20, while the EV to Sales ratio is notably high at 8.29, suggesting that investors are paying a premium for each dollar of sales despite the company's losses.
In comparison to its peers, Riot Platforms, Inc. has a much less favorable standing. For instance, Credo Technology Group Holding Ltd. has a P/E ratio of 255.22, indicating a strong valuation, while Box, Inc. is rated attractive with a P/E of 22.48. The stark contrast in these ratios highlights the challenges facing Riot Platforms, Inc. Furthermore, the company's recent stock performance has lagged behind the S&P 500, particularly over the past year, where it has returned -2.93% compared to the S&P 500's 10.26%. This underperformance reinforces the notion that the stock is overvalued in its current state.