Is C D S L overvalued or undervalued?

As of 7 August 2020, the valuation grade for C D S L moved from expensive to very expensive. The company is currently overvalued, with a PE ratio of 70.48, a Price to Book Value of 21.09, and an EV to EBITDA ratio of 57.93. These ratios significantly exceed industry norms, indicating a premium valuation that may not be justified by underlying performance.
In comparison to peers, C D S L's valuation metrics are notably high; for instance, its PE ratio is substantially higher than the average for the capital markets industry. The PEG ratio stands at 2.75, suggesting that growth expectations are already priced in at a high level. While the company's recent stock performance has outpaced the Sensex, with a 1-year return of 72.28% compared to the Sensex's 7.82%, this does not mitigate the concerns regarding its valuation. Overall, C D S L appears to be overvalued in the current market environment.