Is Chemfab Alka. overvalued or undervalued?

As of 23 May 2024, the valuation grade for Chemfab Alkalis Ltd. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued. Key ratios highlight this concern, with a PE ratio of 367.03, an EV to EBIT of 155.27, and a Price to Book Value of 2.85, all of which are substantially higher than typical industry benchmarks.
In comparison to peers, Chemfab Alkalis Ltd. stands out with a PE ratio significantly above the average, while its EV to EBITDA ratio of 26.21 aligns with its high valuation. Notably, the company has a PEG ratio of 0.00, suggesting no growth expectations are priced in, which further emphasizes its overvaluation. Recent performance shows that Chemfab has underperformed against the Sensex, with a year-to-date return of -26.8% compared to the Sensex's 5.56%, reinforcing the notion that the stock may be overvalued in the current market context.