Is Workhorse Group, Inc. overvalued or undervalued?

As of 1 March 2023, the valuation grade for Workhorse Group, Inc. moved from does not qualify to risky, indicating a significant downgrade in its investment appeal. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.28, an EV to EBIT of -0.40, and an EV to EBITDA of -0.46, all of which suggest substantial financial distress.
In comparison to peers, Miller Industries, Inc. has a P/E ratio of 11.18, highlighting the stark contrast in valuation between the two companies, while Kandi Technologies Group, Inc. also presents a risky profile with an EV to EBITDA of -1.99. Furthermore, Workhorse's stock has drastically underperformed against the S&P 500, with a year-to-date return of -86.93% compared to the index's 12.22%, reinforcing the notion of its overvaluation.