Is Focus Business overvalued or undervalued?

As of 28 May 2025, the valuation grade for Focus Business has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued, with a PE ratio of 58.79, a Price to Book Value of 12.82, and an EV to EBITDA ratio of 38.90. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
When compared to peers, Focus Business's valuation stands out as particularly high; for instance, Altius Telecom has a PE ratio of 52.97 and an EV to EBITDA of 11.81, both significantly lower than Focus Business. Other competitors like Embassy Off.REIT and Inventurus Knowledge also reflect lower valuations, with PE ratios of 23.06 and 56.63, respectively. The recent stock performance of Focus Business, with a 1-year return of 93.36% compared to the Sensex's 7.57%, further emphasizes the disparity between its market price and intrinsic value, reinforcing the conclusion that it is overvalued.