Is Acme Resources overvalued or undervalued?

Jun 09 2025 03:39 PM IST
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As of August 7, 2024, Acme Resources is overvalued with a high PE ratio of 28.33 and underperforming metrics, including a 2.71% ROE and a -19.17% return year-to-date, making it a poor investment at its current price of 39.30.
As of 7 August 2024, Acme Resources has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, as indicated by its high PE ratio of 28.33, EV to EBIT of 23.07, and a PEG ratio of 0.26. In comparison to peers, Life Insurance is fairly valued with a PE of 12.54, while Bajaj Finance is also very expensive with a PE of 35.01.

The company's financial metrics suggest that it is not only overvalued but also underperforming in terms of return on equity (ROE) at 2.71% and return on capital employed (ROCE) at 3.40%. Additionally, Acme Resources has underperformed the Sensex over the year-to-date period, with a return of -19.17% compared to the Sensex's 5.62%. This further reinforces the notion that the stock is not a good investment at its current price of 39.30.
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