Is Volcon, Inc. overvalued or undervalued?

As of 12 May 2022, Volcon, Inc. has moved from a grade of "does not qualify" to "risky." The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.17, an EV to EBIT of 0.56, and an EV to EBITDA of 0.58, all indicating significant financial distress and inefficiency in generating returns.
In comparison to its peers, Volcon's valuation metrics are concerning. For instance, Faraday Future Intelligent Electric, Inc. has a worse EV to EBITDA ratio of -1.9506, while Kandi Technologies Group, Inc. shows a more extreme EV to EBITDA of -1.1454. Despite a recent surge in stock price, with a 1-month return of 958.4% compared to the S&P 500's 3.83%, the long-term performance remains troubling, with a 1-year return of -97.42%. This suggests that while there may be short-term volatility, the underlying fundamentals do not support a sustainable valuation.