Is Rivian Automotive, Inc. overvalued or undervalued?

As of 16 December 2021, Rivian Automotive, Inc. has moved from a valuation grade of "does not qualify" to "risky." The company is currently considered overvalued. Key ratios indicate significant financial distress, with a Price to Book Value of 2.58, an EV to EBIT of -3.45, and an EV to EBITDA of -4.58. The return on capital employed (ROCE) stands at a staggering -110.70%, and the return on equity (ROE) is at -59.93%, underscoring the challenges the company faces.
In comparison to its peers, Rivian's valuation metrics are concerning. For instance, VinFast Auto Ltd. has an EV to EBITDA of -5.73, while Lucid Group, Inc. shows an EV to EBITDA of -1.97, both indicating similar struggles within the industry. In contrast, Oshkosh Corp. and Harley-Davidson, Inc. are classified as attractive, with P/E ratios of 12.00 and 9.23, respectively. Rivian's recent stock performance has been lackluster, with a year-to-date return of 2.63%, slightly outperforming the S&P 500's 2.44%, but its longer-term performance has significantly lagged behind, suggesting a need for caution in its valuation.