Is Credo Brands overvalued or undervalued?

As of 28 June 2024, the valuation grade for Credo Brands has moved from does not qualify to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued. Key ratios supporting this assessment include a PE ratio of 17.16, an EV to EBITDA of 7.59, and a PEG ratio of 1.21, all of which suggest that the company is trading at a reasonable valuation compared to its earnings growth potential.
In comparison to its peers, Credo Brands stands out with a much lower PE ratio than Avenue Supermarts Ltd., which has a PE of 100.87, and Trent Ltd., which has a PE of 132.74. Additionally, while Medplus Health is also rated very attractive, it has a significantly higher EV to EBITDA of 24.07, further highlighting Credo Brands' relative value. Notably, Credo Brands has outperformed the Sensex over the past month, with a stock return of 43.78% compared to the Sensex's 3.80%, reinforcing its attractive valuation proposition.