Is Acme Resources overvalued or undervalued?

As of 1 October 2025, Acme Resources has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 26.74, an EV to EBIT of 22.00, and a Price to Book Value of 0.78. Compared to peers, Bajaj Finance has a significantly higher PE ratio of 35.27, while Life Insurance stands out with a much lower PE of 11.74, indicating a stark contrast in valuation within the sector.
Despite a recent positive return of 10.5% over the past year compared to a -3.90% return for the Sensex, Acme Resources' financial performance, reflected in a ROCE of 3.40% and ROE of 2.71%, suggests that the stock may not justify its current price level. Overall, the combination of high valuation ratios and lower returns on capital indicates that Acme Resources is overvalued in the current market environment.