Is Accord Synergy overvalued or undervalued?

As of 30 May 2025, the valuation grade for Accord Synergy has moved from does not qualify to risky, indicating a significant shift in its financial standing. The company appears to be undervalued, given its low PE ratio of -6.06, EV to EBITDA of -2.97, and a Price to Book Value of 0.52. These ratios suggest that the market may not be fully recognizing the potential value of the company, especially in comparison to peers like Bharti Airtel, which has a PE ratio of 40.24 and EV to EBITDA of 13.55, indicating a much higher valuation.
In the context of its industry, Accord Synergy's financial metrics, particularly the negative ROCE of -13.34% and ROE of -8.57%, highlight its struggles relative to more stable competitors. While the stock has underperformed against the Sensex over various time frames, including a YTD decline of 19.6% compared to the Sensex's 6.24% gain, the current valuation may present an opportunity for investors looking for potential recovery in a risky environment.