Is 3rd Rock Multi overvalued or undervalued?

As of 31 December 2021, the valuation grade for 3rd Rock Multi has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company appears to be overvalued, given its negative PE ratio of -10.88, an EV to EBIT of -37.18, and an EV to EBITDA of -39.30. These ratios highlight severe profitability issues, with a return on equity (ROE) of -106.18% and a return on capital employed (ROCE) of -27.95%, suggesting that the company is struggling to generate returns for its investors.
In comparison to its peers, 3rd Rock Multi's valuation metrics stand out unfavorably. For instance, Altius Telecom, which is rated very attractive, has a PE ratio of 52.97, while other peers like Embassy Off.REIT and National High are rated very expensive with PE ratios of 23.06 and 79.56, respectively. The stark contrast in these valuations indicates that 3rd Rock Multi is not only underperforming but is also priced at a premium compared to its more successful counterparts. Additionally, the company's stock has underperformed relative to the Sensex over the past three years, which reinforces the notion of overvaluation.