Is A B B overvalued or undervalued?

As of 15 May 2020, A B B's valuation grade moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its high PE ratio of 67.88, an EV to EBITDA ratio of 52.83, and a Price to Book Value of 18.12. In comparison to its peers, A B B's valuation metrics are notably elevated, with its PE ratio exceeding the industry average, which suggests a premium that may not be justified by its financial performance.
The peer comparison highlights that A B B's PEG ratio stands at 2.32, further reinforcing the notion of overvaluation when compared to industry standards. While the company has shown strong returns over the long term, such as a 162.68% increase over three years, its recent performance has lagged behind the Sensex, with a year-to-date decline of 10.80% compared to the Sensex's 5.61% gain. Overall, A B B appears to be overvalued in the current market context.