Is Checkpoint Trend overvalued or undervalued?

As of 29 May 2025, the valuation grade for Checkpoint Trend has moved from risky to very expensive. This indicates a significant shift in the perception of the company's value, suggesting that it is currently overvalued. The company exhibits a PE ratio of 10.00, an EV to EBITDA ratio of 9.96, and a ROE of 1.71%, which are relatively low compared to its peers.
In comparison, Sun Pharma has a PE ratio of 35.25 and an EV to EBITDA of 24.91, while Divi's Lab shows a PE of 79.33 and an EV to EBITDA of 57.35, both of which highlight the premium valuations in the industry. Given these metrics, Checkpoint Trend appears overvalued relative to its peers, especially considering its negative ROCE of -19.00%. The company's stock has significantly outperformed the Sensex over the past year, with a return of 117.24% compared to the Sensex's 7.61%, but this does not mitigate the concerns regarding its current valuation.