Is Checkpoint Trend overvalued or undervalued?

As of 9 September 2025, Checkpoint Trend's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its financial ratios, with a PE ratio of 21.54, an EV to EBITDA ratio of 21.51, and a ROE of 8.71%. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Checkpoint Trend's valuation stands out as notably high. For instance, Sun Pharma has a PE ratio of 33.36, while Cipla is more attractively valued with a PE of 23.28. The PEG ratio for Checkpoint Trend is 0.00, which further emphasizes its overvaluation given the lack of growth relative to its price. Additionally, despite impressive stock returns over the past year (329.55%), the company's current valuation does not align with its financial performance, reinforcing the conclusion that it is overvalued.