Is Apollo Micro Sys overvalued or undervalued?

As of 14 July 2023, the valuation grade for Apollo Micro Systems has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 111.37, an EV to EBITDA of 50.71, and a Price to Book Value of 10.35. These figures suggest that the stock price may not be justified by its earnings or book value.
When compared to its peers in the Aerospace & Defense industry, Apollo Micro Systems stands out with a PE ratio significantly higher than the industry average, which further reinforces its overvaluation status. For instance, its PEG ratio of 1.66 also indicates that the stock is priced high relative to its growth potential. While the company has shown impressive stock performance, with a year-to-date return of 73.96% compared to the Sensex's 5.58%, this may not be sustainable given the current valuation metrics.