Is Faze Three overvalued or undervalued?

As of 30 June 2025, Faze Three's valuation grade has moved from fair to expensive, indicating a shift in its perceived market value. The company appears to be overvalued based on its current metrics. Key ratios include a PE ratio of 36.25, an EV to EBITDA of 20.47, and a Price to Book Value of 3.51, which suggest that the stock is trading at a premium compared to its earnings and book value.
When compared to peers, Faze Three's PE ratio is notably lower than K P R Mill Ltd, which stands at 47.89, and higher than Vardhman Textile at 16.36, further supporting the notion of overvaluation. Additionally, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 36.50% compared to the Sensex's 7.00%, which may reflect investor enthusiasm but does not mitigate the valuation concerns.