Is Cool Caps overvalued or undervalued?

As of 2 January 2025, the valuation grade for Cool Caps has moved from very expensive to risky. The company is currently assessed as overvalued. Key ratios indicate significant concerns, with a PE ratio of 76.90, an EV to EBITDA of 613.76, and a ROCE of -3.65%.
In comparison with peers, Cool Caps' PE ratio is considerably higher than that of Supreme Industries Ltd. at 57.34 and Finolex Industries Ltd. at 28.37, both of which are also in the expensive category. The PEG ratio of 0.38 suggests that while the company may have growth potential, its current valuation does not reflect a favorable risk-reward scenario. Additionally, despite a strong 1-year stock return of 142.42% compared to the Sensex's 7.86%, the overall valuation metrics indicate that Cool Caps is not a sound investment at its current price.