Is Zevia PBC overvalued or undervalued?

As of 12 November 2021, the valuation grade for Zevia PBC has moved from very expensive to risky, indicating a significant shift in its market perception. The company appears to be overvalued given its current financial metrics, with a Price to Book Value of 3.61 and an EV to Sales ratio of 1.08, despite being loss-making with a P/E ratio that is not applicable. The negative ROCE of -69.28% and ROE of -34.77% further highlight the challenges the company faces in generating returns for shareholders.
In comparison to its peers, Zevia PBC's valuation metrics are concerning, with a peer P/E ratio of -11.68, suggesting that the market is pricing in substantial risk. Notably, while Zevia has shown a remarkable 348.52% return over the past year, its year-to-date performance of -22.43% contrasts sharply with the S&P 500's 2.44% gain, reinforcing the notion that the stock may be overvalued in the current market environment.