Is Avro India overvalued or undervalued?

As of 14 November 2024, the valuation grade for Avro India Ltd. has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on key financial ratios, including a PE ratio of 75.76, an EV to EBITDA of 50.03, and a Price to Book Value of 8.35. These figures suggest that the stock is trading at a significant premium compared to its earnings and book value.
In comparison with peers, Avro India stands out with a notably high PE ratio, whereas other companies in the industry may exhibit lower valuations, which raises concerns about its sustainability. For instance, the PEG ratio is reported at 0.00, indicating a lack of growth expectations priced into the stock. Additionally, while Avro India has performed well over the past year with a return of 52.39%, this is contrasted by a year-to-date decline of 12.63%, suggesting volatility and potential overextension in its current valuation. Overall, Avro India Ltd. appears to be overvalued in the current market environment.