Is Chemo Pharma Lab overvalued or undervalued?

As of 25 April 2023, Chemo Pharma Lab's valuation grade has moved from does not qualify to risky, indicating a shift in its perceived investment quality. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of 19.25 and a negative EV to EBIT and EV to EBITDA of -12.50. Additionally, the ROCE stands at -3.04%, which raises concerns about its operational efficiency.
In comparison to its peers, Chemo Pharma Lab's valuation is notably less attractive. For instance, Altius Telecom, categorized as very attractive, has a PE ratio of 52.97, while other peers like Embassy Off.REIT and Inventurus Knowl are deemed very expensive with PE ratios of 23.06 and 56.63, respectively. Chemo Pharma Lab's stock has underperformed recently, with a one-week return of -9.53% compared to a 1.41% gain in the Sensex, further supporting the notion that it is currently overvalued.