Is C P C L overvalued or undervalued?

As of 25 July 2025, the valuation grade for C P C L has moved from attractive to risky, indicating a significant shift in its market perception. The company is currently assessed as overvalued, primarily due to its troubling financial ratios, including a PE ratio of -55.91, an EV to EBIT of -82.97, and a ROE of just 2.61%. These figures highlight the company's struggles in generating profit relative to its equity and earnings before interest and taxes.
In comparison to its peers, C P C L's valuation metrics starkly contrast with those of Reliance Industries, which has a PE ratio of 23.11 and an EV to EBITDA of 11.96, and ONGC, which boasts a PE ratio of 8.32 and an EV to EBITDA of 4.65. This disparity underscores the challenges C P C L faces in the competitive oil industry. Additionally, while the stock has shown a YTD return of 9.70%, it has underperformed significantly over the past year with a decline of 32.62%, contrasting with the Sensex's modest gain of 1.78%.