Is Fourth Gen. overvalued or undervalued?

As of 12 November 2024, Fourth Gen. has moved from a grade of "does not qualify" to "risky." The company is currently overvalued based on its financial ratios and peer comparisons. Notably, Fourth Gen. has a PE ratio of -2.69, an EV to EBIT of -3.06, and a PEG ratio of 0.00, indicating significant financial distress and lack of profitability. In comparison to its peers, Fourth Gen. stands out negatively against Firstsour.Solu., which has an attractive PE ratio of 44.82, and eClerx Services with a fair PE of 32.59. The stark contrast in valuation metrics highlights Fourth Gen.'s precarious position within the software products industry. Additionally, while Fourth Gen. has shown a strong return of 108.4% over the past three years, it still lags behind the Sensex's 49.15% return in the same period, reinforcing the notion that the stock may not be a sound investment at its current valuation.