Is AYM Syntex overvalued or undervalued?

As of 16 June 2025, AYM Syntex'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 current metrics. The PE ratio stands at 127.77, the Price to Book Value is 2.57, and the EV to EBITDA is 14.02, all suggesting that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, AYM Syntex's PE ratio is significantly higher than K P R Mill Ltd at 45.76 and Trident at 41.88, both of which are in the garment and apparel industry. Additionally, AYM's EV to EBITDA ratio of 14.02 is also higher than Vardhman Textile's 11.35, further supporting the conclusion of overvaluation. While AYM Syntex has shown impressive returns over the past year at 166.08%, this performance does not negate the current overvaluation indicated by its financial ratios.