Is Esha Media overvalued or undervalued?

As of 25 April 2023, Esha Media's valuation grade has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company appears to be overvalued, given its negative PE ratio of -2.54, a Price to Book Value of -1.26, and an EV to EBITDA ratio of -17.02. These metrics suggest that the company is struggling to generate positive earnings and is not creating value for shareholders.
In comparison to its peers, Esha Media's financial ratios starkly contrast with those of companies like PTC India, which boasts a PE ratio of 9.02 and an EV to EBITDA of 4.14, indicating a much healthier valuation. Furthermore, MMTC, another peer, has a PE ratio of 119.39, highlighting the disparity in market perception. While Esha Media has shown strong short-term stock performance with a 19.83% return over the past week, its year-to-date performance of -17.85% relative to the Sensex suggests underlying challenges that may not be sustainable.