Is Zoomcar Holdings, Inc. overvalued or undervalued?

As of 7 September 2023, the valuation grade for Zoomcar Holdings, Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company appears to be overvalued, particularly given its P/E ratio of -0.1285 and EV to EBITDA of -1.6308, which are starkly negative compared to industry standards. Additionally, the absence of a PEG ratio further complicates its valuation.
When comparing Zoomcar to its peers, the negative P/E and EV to EBITDA ratios suggest that it is underperforming relative to the market, which may be reflected in its stock performance. For instance, while the S&P 500 has returned 12.22% year-to-date, Zoomcar has plummeted by 99.01%, highlighting a stark contrast in performance. This significant underperformance reinforces the notion that Zoomcar is currently overvalued in the market.