Is Worksport Ltd. overvalued or undervalued?

As of 6 February 2024, Worksport Ltd. has moved from a grade of "does not qualify" to "risky." The company is currently considered overvalued based on its financial ratios and peer comparisons. Notably, Worksport's Price to Book Value stands at 0.84, while its EV to EBITDA is -1.05, and its ROCE is a concerning -88.28%.
In comparison to its peers, Worksport's valuation metrics are significantly weaker; for instance, Cooper-Standard Holdings, Inc. has a P/E ratio of -15.14, and China Yuchai International Ltd. is considered attractive with a P/E of 8.31. The stark contrast in performance and valuation indicates that Worksport is not only underperforming relative to its peers but also suggests a lack of investor confidence, as reflected in its recent stock performance, which has significantly lagged behind the S&P 500 over various time frames.