Is Rocket Lab USA, Inc. overvalued or undervalued?

As of 3 August 2021, the valuation grade for Rocket Lab USA, Inc. moved from does not qualify to risky, indicating increased caution regarding its financial health. The company appears to be overvalued given its high Price to Book Value of 33.52 and negative EV to EBIT and EV to EBITDA ratios of -70.19 and -83.52, respectively, which suggest significant operational challenges. In comparison, Curtiss-Wright Corp., a peer in the aerospace and defense industry, has a fair valuation with a P/E ratio of 48.64 and an EV to EBITDA of 32.32, highlighting the disparity in financial performance.
Despite the overvaluation, Rocket Lab has shown impressive stock performance, with a year-to-date return of 85.24% compared to the S&P 500's 12.22%, and a staggering one-year return of 562.64% against the S&P 500's 17.14%. This strong performance may be driven by market speculation rather than underlying financial strength, reinforcing the notion that the stock is overvalued.