Is Acme Resources overvalued or undervalued?

As of 14 October 2025, Acme Resources has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 26.69, an EV to EBIT of 21.96, and a ROE of 2.71%. In comparison to peers, Bajaj Finance has a significantly higher PE ratio of 36.37, while Life Insurance stands out with a much lower PE ratio of 11.7, indicating that Acme Resources is priced at a premium relative to some competitors in the Non Banking Financial Company (NBFC) sector.
The valuation metrics suggest that Acme Resources is not only overvalued but also carries a high risk given its low ROCE of 3.40%. Despite a strong 5-year stock return of 307.6%, the recent year-to-date performance shows a decline of 18.35%, contrasting sharply with the Sensex's gain of 4.98%. This further reinforces the notion that the stock may be overpriced in the current market environment.