Is Coastal Roadways overvalued or undervalued?

As of 12 June 2025, Coastal Roadways has moved from a grade of risky to attractive, indicating a significant improvement in its valuation outlook. The company is currently assessed as undervalued, particularly when considering its key financial ratios: a PE ratio of 12.65, an EV to EBITDA of 2.60, and a Price to Book Value of 0.54. These figures suggest that the company is trading at a discount compared to its peers.
In comparison to its industry peers, Coastal Roadways stands out with a much lower PE ratio than Container Corporation at 35.84 and Aegis Logistics at 48.67, both of which are categorized as very expensive. Additionally, Coastal Roadways' EV to EBITDA ratio of 2.60 is significantly more favorable than that of its peers, reinforcing its attractive valuation. Despite recent stock underperformance relative to the Sensex, with a year-to-date return of -21.71% compared to the Sensex's 4.55%, the overall valuation metrics indicate that Coastal Roadways presents a compelling investment opportunity at its current price of 30.50.