Is Digjam overvalued or undervalued?

As of 7 November 2025, the valuation grade for Digjam has moved from does not qualify to expensive, indicating a significant shift in its market perception. The company is currently considered overvalued, with a PE ratio of 86.98, an EV to EBITDA ratio of 135.19, and a Price to Book Value of 2.07. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Digjam's valuation appears excessive, especially when contrasted with K P R Mill Ltd, which has a PE ratio of 43.65, and Trident, which stands at 32.8. The disparity in these ratios highlights that Digjam is not only expensive relative to its direct competitors but also raises concerns about its sustainability in the current market environment. Additionally, Digjam has underperformed against the Sensex over various time frames, particularly with a year-to-date decline of 25.31%, further reinforcing the notion of overvaluation.