Is BKV Industries overvalued or undervalued?

As of 29 May 2025, the valuation grade for BKV Industries has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios include a PE Ratio of 19.06, an EV to EBIT of -18.38, and a ROCE of just 1.07%. These figures suggest that the company's earnings and returns on capital are not aligned with its market valuation.
When compared to peers, BKV Industries' PE Ratio is slightly lower than Avanti Feeds at 19.15 and Mukka Proteins at 20.24, both of which are rated more favorably. The negative EV to EBIT and EV to EBITDA ratios further highlight the company's financial struggles relative to its competitors. Additionally, while BKV Industries has outperformed the Sensex over the long term, its recent performance shows a decline, with a year-to-date return of -7.41% compared to the Sensex's 5.59%. This further reinforces the notion that the stock is currently overvalued.