Is Aban Offshore overvalued or undervalued?

As of 9 April 2020, the valuation grade for Aban Offshore has moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued, particularly given its troubling ratios, including a PE Ratio of -0.31, an EV to EBITDA of 91.74, and an EV to Sales of 33.19. These figures suggest that the company is struggling to generate positive earnings and is facing substantial valuation challenges.
In comparison to its peers, Aban Offshore's valuation metrics starkly contrast with those of Reliance Industries, which has a PE Ratio of 28.05 and an EV to EBITDA of 12.68, and ONGC, boasting a PE Ratio of 8.31 and an EV to EBITDA of 4.65. This disparity highlights the significant risk associated with investing in Aban Offshore. Additionally, the company's stock performance has lagged behind the Sensex, particularly over the past year, with a return of -27.25% compared to the Sensex's 7.58%, reinforcing the notion that Aban Offshore is currently overvalued.