Is Rivian Automotive, Inc. overvalued or undervalued?

As of 16 December 2021, the valuation grade for Rivian Automotive, Inc. moved from does not qualify to risky. The company is currently overvalued based on its financial metrics, which include a Price to Book Value of 2.58, an EV to Sales ratio of 2.66, and a troubling ROCE of -110.70%. In comparison, Ford Motor Co., a peer in the automobile industry, has a much more favorable P/E ratio of 15.63 and an EV to EBITDA of 20.06, highlighting Rivian's relative weakness.
Additionally, Rivian's recent stock performance shows a 1-month return of 18.29%, outperforming the S&P 500's 2.33% return over the same period, but this is overshadowed by a significant 3-year decline of -62.61% compared to the S&P 500's 70.41% gain, indicating substantial long-term challenges. Overall, the combination of high valuation ratios and poor returns suggests that Rivian is not a sound investment at its current price.