Is Catvision Ltd overvalued or undervalued?

As of 25 April 2023, Catvision Ltd has moved from a grade of "does not qualify" to "risky." The company is currently considered overvalued. Key ratios indicate significant concerns, with a PE ratio of -12.95, an EV to EBITDA of -9.77, and a Price to Book Value of 0.56. These figures suggest that the company's financial performance is under pressure, as reflected by negative returns on capital employed (ROCE) of -3.43% and return on equity (ROE) of -1.39%.
In comparison to its peers, Catvision Ltd's valuation stands out negatively against companies like Crompton Greaves Consumer, which is rated attractive with a PE of 40.79, and Electronics Mart, which is fairly valued with a PE of 29.67. The stark contrast in valuation metrics highlights the challenges Catvision faces in the market. Additionally, while Catvision's stock has outperformed the Sensex over the long term, its recent performance has lagged, particularly with a year-to-date return of -12.33% compared to the Sensex's 5.61%.