Is Allcargo Logist. overvalued or undervalued?

As of 9 January 2025, the valuation grade for Allcargo Logistics has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 115.80, an EV to EBITDA of 9.04, and a dividend yield of 6.16%, which suggests a strong income potential despite the high valuation metrics.
In comparison to peers, Allcargo's valuation metrics stand out, with a PE ratio of 115.80 and an EV to EBITDA of 9.04, which are relatively high, yet the company maintains a competitive edge in the transport services industry. Notably, its PEG ratio of 4.48 reflects growth expectations that may not be fully priced in. While the stock has underperformed against the Sensex over the past year, it has shown resilience with a 7.88% return over the past week, reinforcing the notion that the market may be undervaluing its potential.