Is CL Educate overvalued or undervalued?

As of 8 August 2025, the valuation grade for CL Educate has moved from fair to attractive, indicating a more favorable outlook for the company. The current analysis suggests that CL Educate is undervalued, particularly in light of its significant price-to-earnings (PE) ratio of -65.05, a price-to-book value of 1.65, and an EV to EBITDA ratio of 16.79. These ratios highlight a discrepancy in valuation compared to its peers.
In comparison to its industry peers, CL Educate's valuation stands out, especially when looking at Global Education with a PE of 13.01 and an EV to EBITDA of 9.86, and Zee Learn with a PE of 15.4 and an EV to EBITDA of 6.73. These peers are also categorized as attractive, yet CL Educate's negative PE ratio suggests it is currently trading at a discount relative to its potential. Notably, while CL Educate has faced a year-to-date stock return of -29.28%, the broader Sensex has seen a modest gain of 2.20%, reinforcing the notion that CL Educate may present a buying opportunity at its current valuation.