Is Gala Global overvalued or undervalued?

As of 2 June 2025, the valuation grade for Gala Global has moved from very attractive to risky, indicating a significant deterioration in its financial standing. The company is currently overvalued based on its negative performance metrics, including a PE ratio of -3.32, an EV to EBITDA of -30.54, and a ROE of -13.80%. These figures highlight the challenges Gala Global faces in generating profits and shareholder returns.
When compared to its peers, Gala Global's valuation stands out unfavorably. For instance, Doms Industries is categorized as very expensive with a PE ratio of 72.62, while Flair Writing, which is considered fair, has a PE ratio of 23.28. This stark contrast underscores Gala Global's struggles within its industry. Additionally, the company's stock performance has lagged significantly behind the Sensex, with a one-year return of -13.75% compared to the Sensex's 7.62%, reinforcing the notion that Gala Global is currently overvalued.