Is GCM Commodity overvalued or undervalued?

As of 14 August 2025, GCM Commodity's valuation grade has moved from risky to very expensive, indicating a significant deterioration in its perceived value. The company is currently considered overvalued. Key ratios highlight this concern, with a PE ratio of -0.75, an EV to EBIT of -0.04, and a ROCE of -48.46%. These figures suggest that GCM Commodity is struggling to generate positive returns and is not performing well relative to its equity.
In comparison to its peers, GCM Commodity's valuation stands out unfavorably. For instance, Life Insurance, which is rated very attractive, has a PE ratio of 11.53 and an EV to EBITDA of 8.97. In contrast, Bajaj Finance, rated very expensive, shows a PE ratio of 30.73 and an EV to EBITDA of 17.64. The stark difference in these ratios underscores GCM Commodity's overvaluation within the non-banking financial company sector. Additionally, GCM's stock has underperformed significantly over the past year, with a return of -33.68% compared to the Sensex's 1.89%, further reinforcing the notion of overvaluation.