Is Faze Three overvalued or undervalued?

As of 14 July 2025, the valuation grade for Faze Three has moved from expensive to very expensive. This indicates a significant increase in perceived valuation, suggesting that the company is currently overvalued. The key ratios reflect this sentiment, with a PE ratio of 42.33, an EV to EBITDA of 23.55, and a Price to Book Value of 4.10, all of which are considerably high compared to industry norms.
In comparison with peers, K P R Mill Ltd has a PE ratio of 49.82 and an EV to EBITDA of 32.5, while Trident shows a more reasonable PE of 42.96 and an EV to EBITDA of 18.5, indicating that Faze Three's valuation is on the higher end of the spectrum. Given these ratios and the overall market context, Faze Three appears to be overvalued. Notably, the company has outperformed the Sensex significantly over various periods, including a year-to-date return of 59.38% compared to the Sensex's 5.27%, which may contribute to the inflated valuation perception.