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 appears to be overvalued based on its current metrics. Key ratios include a PE ratio of 26.15, an EV to EBIT of 21.56, and a ROCE of only 3.40%, which suggests inefficiency in generating returns relative to its capital employed.
When compared to peers, Acme Resources' valuation stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance shows a much lower PE of 11.49, indicating that Acme is priced significantly higher than some competitors despite its lower return metrics. Additionally, the company's recent stock performance has been lackluster, with a year-to-date return of -19.99%, contrasting with the Sensex's gain of 7.44%, further reinforcing the notion that Acme Resources is currently overvalued.