Is Xos, Inc. overvalued or undervalued?

As of 10 November 2022, the valuation grade for Xos, Inc. has moved from very attractive to risky, 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 1.06 and an EV to Sales ratio of 0.98, which are not favorable in comparison to its peers. The company's ROCE stands at a staggering -96.73%, and the ROE is at -200.64%, highlighting severe operational inefficiencies.
In comparison to its peers, Xos, Inc. has a notably lower EV to EBITDA ratio of -1.19, while Miller Industries, Inc. boasts a much healthier EV to EBITDA of 6.2824, reflecting a stark contrast in financial health. TuSimple Holdings, Inc. also presents a better picture with an EV to EBITDA of 1.4010. The recent stock performance of Xos, Inc. has been disappointing, with a year-to-date decline of 7.1%, significantly underperforming the S&P 500's gain of 2.44% in the same period, further reinforcing the notion that the company is currently overvalued.