Is Coromandel Inter overvalued or undervalued?

As of 4 June 2024, the valuation grade for Coromandel International has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 37.58, an EV to EBITDA of 24.21, and a PEG ratio of 4.23, all of which suggest that the stock is priced at a premium compared to its earnings and growth potential.
In comparison to its peers, Coromandel's valuation stands out, particularly against Chambal Fertilizers, which has a PE ratio of 13.11 and an EV to EBITDA of 8.32, and Deepak Fertilizers, with a PE ratio of 20.81 and an EV to EBITDA of 11.93. The disparity in these ratios highlights that Coromandel is trading at a significantly higher valuation than its competitors. Additionally, the company's stock has outperformed the Sensex over the past year, with a return of 68.95% compared to the Sensex's 7.59%, reinforcing the notion of overvaluation.