Is Digicontent overvalued or undervalued?

As of 3 May 2024, the valuation grade for Digicontent has moved from risky to does not qualify, indicating a significant shift in its perceived investment quality. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of 11.65 and an EV to EBITDA of 6.64, which are not compelling when compared to its peers. The PEG ratio stands at an exceptionally low 0.04, suggesting that the stock may be priced too high relative to its growth potential.
In comparison to its peer, which has a similar PE ratio of approximately 11.65 and an EV to EBITDA of 6.64, Digicontent does not demonstrate a favorable valuation position. The high ROE of 175.40% and ROCE of 40.80% are impressive, yet they do not sufficiently justify the current stock price of 54.97, especially given the recent performance where the stock has outperformed the Sensex over the past year with a return of 154.26% compared to the Sensex's 7.59%. Overall, the data suggests that Digicontent is overvalued in the current market context.