Is Candour Techtex overvalued or undervalued?

As of 8 October 2025, the valuation grade for Candour Techtex has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, as reflected by its PE Ratio of -210.28, Price to Book Value of 5.71, and EV to EBITDA of 54.97. These figures highlight a concerning financial position, particularly the negative PE Ratio and low ROE of -2.31%, suggesting that the company is not generating sufficient returns for its shareholders.
In comparison to its peers, Candour Techtex stands out unfavorably; for instance, LMW has a PE Ratio of 149.21 and an EV to EBITDA of 98.61, while Bajaj Steel Industries is more attractively valued with a PE of 20.1 and an EV to EBITDA of 13.29. The stark contrast in these ratios emphasizes that Candour Techtex is not only overvalued but also lacks competitive financial metrics within its industry. Despite its recent stock performance, which has outpaced the Sensex over various periods, the underlying valuation concerns suggest that investors should exercise caution.