Is A F Enterprises overvalued or undervalued?

As of 5 June 2024, the valuation grade for A F Enterprises has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial ratios, which include a PE ratio of -12.24, an EV to EBITDA of -15.85, and a Price to Book Value of 0.32. These figures suggest that the company is struggling to generate positive earnings and is trading at a low valuation relative to its book value.
When compared to peers, A F Enterprises stands out negatively; for instance, Supreme Industries has a PE ratio of 57.34 and an EV to EBITDA of 37.87, while Finolex Industries shows a PE of 28.37 and an EV to EBITDA of 24.37. This stark contrast highlights the challenges A F Enterprises faces in its industry. Additionally, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -73.07% compared to the Sensex's 5.62%, further reinforcing the notion that it is overvalued at its current price of 3.48.