Is Acme Resources overvalued or undervalued?

As of 17 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 26.15, an EV to EBIT of 21.56, and a ROE of 2.71%. In comparison, Bajaj Finance, also very expensive, has a significantly higher PE ratio of 38.21, while Life Insurance, rated very attractive, has a much lower PE of 11.49, highlighting the disparity in valuation within the sector.
The company's valuation metrics suggest a disconnect between its stock price and financial performance, as evidenced by a low ROCE of 3.40% and a PEG ratio of 0.11, indicating potential overvaluation. Additionally, Acme's recent stock performance has lagged behind the Sensex, particularly with a year-to-date return of -19.99% compared to the Sensex's 7.44%, reinforcing the notion that the stock may not justify its current price level.