Is Dixon Technolog. overvalued or undervalued?

As of 8 January 2025, the valuation grade for Dixon Technologies has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios. The PE ratio stands at 122.81, while the EV to EBITDA ratio is 59.76, and the Price to Book Value is 29.80, indicating significant premium valuations compared to its earnings and book value.
In comparison to its peers, Dixon Technologies' PE ratio is notably higher than the industry average, which suggests that investors are paying a premium for its shares. For instance, if we consider a peer like a typical competitor in the electronics and appliances sector, their PE ratio may be significantly lower, indicating that Dixon is trading at a higher multiple. Additionally, while the company has demonstrated strong returns over the past year at 48.63%, its year-to-date performance of -17.22% contrasts sharply with the Sensex's gain of 5.60%, reinforcing the notion that the stock may be overvalued in the current market environment.