Is Aakash Explor. overvalued or undervalued?

As of 20 June 2025, the valuation grade for Aakash Exploration has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its PE ratio of 24.36, an EV to EBIT of 18.34, and an EV to EBITDA of 9.23. In comparison, peers such as Reliance Industries have a PE ratio of 28.46, while ONGC shows a more attractive PE of 8.7, highlighting the relative overvaluation of Aakash Exploration.
Given these ratios and the recent performance, Aakash Exploration appears to be overvalued in the current market context. Despite a strong one-week return of 45.13% compared to the Sensex's 1.59%, the long-term outlook remains concerning, especially with a three-year return of -37.33% against the Sensex's 63.60%. This suggests that while short-term gains may be enticing, the overall valuation does not support sustained growth at current price levels.