Is Arkade overvalued or undervalued?

As of 17 October 2025, Arkade's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company is still considered overvalued based on its financial metrics. The price-to-earnings (PE) ratio stands at 19.56, while the price-to-book value is notably low at 0.32, suggesting that the stock may not be reflecting its underlying assets appropriately. Additionally, the EV to EBITDA ratio is 14.12, which is relatively high compared to industry standards.
In comparison to its peers, Arkade's PE ratio is significantly lower than that of DLF and Lodha Developers, which are at 39.72 and 39.97, respectively. However, the overall valuation remains concerning given that both DLF and Lodha are categorized as very expensive. The company's return on equity (ROE) is only 1.66%, and the return on capital employed (ROCE) is at 2.10%, which further supports the conclusion of overvaluation. Despite a 1-year stock return of 6.06%, which outperformed the Sensex's 3.64%, the overall financial indicators suggest that Arkade is overvalued in the current market context.