Is The Lion Electric Co. overvalued or undervalued?

As of 3 August 2023, The Lion Electric Co. has moved from a fair to a risky valuation grade, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued given its negative performance metrics, including a Price to Book Value of 0.05, an EV to EBITDA of -3.75, and a ROE of -54.74%.
In comparison to its peers, The Lion Electric Co. stands out unfavorably; for instance, REV Group, Inc. has a P/E ratio of 15.71 and an EV to EBITDA of 12.67, while Blue Bird Corp. shows a P/E of 12.89 and an EV to EBITDA of 9.21. The stark contrast in these ratios highlights the challenges faced by The Lion Electric Co. Furthermore, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -44.68% compared to the index's 2.44%.