Is Continental Seed overvalued or undervalued?

As of 22 September 2025, the valuation grade for Continental Seed has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 25.58, an EV to EBITDA of 10.56, and a ROE of 2.49%.
In comparison to its peers, Continental Seed's PE ratio is significantly higher than Indo US Bio-Tech, which has a PE of 15.88 and is rated fair, while Jain Irrigation is rated very attractive with a PE of 118.16. The stock has underperformed against the Sensex, particularly in the year-to-date period, where it has declined by 42.5% compared to the Sensex's gain of 6.59%. This further reinforces the view that Continental Seed is overvalued in the current market context.