Is VinFast Auto Ltd. overvalued or undervalued?
As of May 10, 2023, VinFast Auto Ltd. is considered risky and overvalued due to its negative P/E ratio of -2.60, an EV to EBITDA ratio of -6.23, and a Price to Book Value of -1.24, reflecting significant financial challenges compared to peers like Rivian and Oshkosh, while its stock has declined by 15.14% year-to-date.
As of 10 May 2023, the valuation grade for VinFast Auto Ltd. has moved from does not qualify to risky, indicating a significant shift in its perceived financial stability. The company is currently considered overvalued, given its negative P/E ratio of -2.60 and an EV to EBITDA ratio of -6.23, both reflecting its loss-making status. Additionally, the Price to Book Value stands at -1.24, further underscoring the challenges the company faces in generating value.In comparison to its peers, Rivian Automotive, Inc. also carries a risky valuation with a P/E of -4.12, while Oshkosh Corp. is classified as attractive with a P/E of 12.00, highlighting the disparity in financial health within the industry. The recent stock performance of VinFast, which has declined by 15.14% year-to-date compared to a modest 2.44% gain in the S&P 500, reinforces the notion that the company is struggling to attract investor confidence amidst its current financial metrics.
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