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 deterioration in its financial standing. The company is currently assessed as overvalued, particularly highlighted by a PE ratio of -55.91 and an EV to EBIT of -82.97, which are concerning indicators of its profitability and operational efficiency. The Price to Book Value stands at 1.25, suggesting that the market is valuing the company higher than its book value, but this is overshadowed by the negative earnings metrics.
In comparison to its peers, C P C L's ratios are starkly unfavorable. For instance, Reliance Industries has a PE ratio of 23.11 and an EV to EBITDA of 11.96, while ONGC boasts a PE of 8.32 and an EV to EBITDA of 4.65, both of which reflect a healthier valuation landscape. Additionally, C P C L's recent stock performance has been underwhelming, with a 1-year return of -32.62%, contrasting sharply with the Sensex's 1.78% gain, further reinforcing the notion that the stock is overvalued in its current state.