Is Affle 3i overvalued or undervalued?

As of 1 June 2020, the valuation grade for Affle (India) Ltd. moved from does not qualify to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 66.35, an EV to EBIT of 62.18, and an EV to EBITDA of 49.73, all of which suggest that the stock is trading at a premium compared to its earnings and operational performance.
In comparison to its peers, Affle's valuation stands out, with a PE ratio significantly higher than many in the industry, such as its closest competitor which may have a PE ratio closer to 30. Additionally, the PEG ratio of 2.35 further reinforces the notion of overvaluation, as it indicates that the stock price may not be justified by its growth rate. Notably, Affle has outperformed the Sensex over various time frames, including a 50.8% return over the past year, which may have contributed to its elevated valuation despite the underlying metrics suggesting a disconnect between price and fundamental value.