Is B P Capital overvalued or undervalued?

As of 12 November 2024, the valuation grade for B P Capital has moved from does not qualify to risky, indicating a significant shift in its risk profile. The company appears to be overvalued based on its financial ratios, including a PE ratio of -6.88, an EV to EBIT of -4.19, and a ROE of -3.24%. These negative figures suggest that the company is struggling to generate profits and returns for its shareholders. In comparison to its peers, B P Capital's valuation metrics are starkly unfavorable. For instance, Life Insurance has a PE ratio of 12.54 and an EV to EBITDA of 9.89, both of which reflect a healthier financial standing. Additionally, Bajaj Finance is considered very expensive with a PE ratio of 35.01, further highlighting B P Capital's relative overvaluation. Notably, the company's recent stock performance has lagged behind the Sensex, with a 1-week return of -0.37% compared to the Sensex's 1.43% gain, reinforcing the notion that B P Capital is currently overvalued.