Is BSEL ALGO overvalued or undervalued?

As of 30 May 2025, the valuation grade for BSEL ALGO has moved from attractive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 6.72, an EV to EBIT of 5.34, and a Price to Book Value of 0.14, which, while low, suggest that the market has priced in a premium that may not be justified by its performance metrics.
In comparison to peers, BSEL ALGO's PE ratio of 6.72 stands in stark contrast to DLF's 46.64 and Macrotech Development's 54.71, both of which are also classified as very expensive. Despite the low valuation ratios, the overall market sentiment appears to be overly optimistic about BSEL ALGO's future prospects, especially given its recent stock performance, which has outpaced the Sensex over the past week and month but has significantly lagged over the year and YTD.