Is Encode Packaging overvalued or undervalued?

As of 17 February 2025, the valuation grade for Encode Packaging has moved from expensive to risky. The company is currently considered overvalued. Key ratios include a PE Ratio of 3.89, an EV to EBIT of -3.91, and a ROE of 4.60%.
When compared to peers, Encode Packaging's valuation stands out as significantly lower; for instance, D B Corp has a PE of 12.8, while MPS shows a PE of 31.33. The negative EV to EBIT and EV to EBITDA ratios further highlight the financial challenges faced by Encode Packaging. Additionally, the company's stock has underperformed over the past year, with a return of -21.72% compared to the Sensex's 7.63%, reinforcing the notion of overvaluation in the current market context.