Is Astron Paper overvalued or undervalued?

As of 30 May 2024, the valuation grade for Astron Paper has moved from very attractive to risky. This shift indicates a significant deterioration in the company's financial health, leading to the conclusion that it is overvalued at its current price of 19.38. Key ratios highlight this concern, with a PE ratio of -1.56, an EV to EBITDA of -4.92, and a ROE of -62.10%, all suggesting severe profitability issues.
In comparison to its peers, Astron Paper's valuation metrics are troubling. For instance, while the industry may have companies with positive PE ratios, Astron stands out with its negative figures, indicating a lack of earnings relative to its share price. Other peers in the paper industry maintain healthier ratios, reinforcing the notion that Astron is not only overvalued but also struggling significantly compared to its competitors. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -15.92% versus the Sensex's 5.58%, further underscoring the challenges it faces in the current market environment.