Is GCM Commodity overvalued or undervalued?

As of 14 August 2025, the valuation grade for GCM Commodity has moved from risky to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently assessed as overvalued. Key ratios reveal a PE ratio of -0.75, an EV to EBIT of -0.04, and a ROCE of -48.46%, all of which suggest severe financial distress and inefficiency.
In comparison to its peers, GCM Commodity's valuation metrics starkly contrast with Life Insurance, which has a PE ratio of 11.53 and an EV to EBITDA of 8.97, indicating a much healthier financial position. Similarly, Bajaj Finance, categorized as very expensive, shows a PE ratio of 30.73 and an EV to EBITDA of 17.64. The stark differences in these ratios highlight GCM Commodity's overvaluation relative to its peers. Additionally, the company's stock has underperformed significantly over the past year, with a return of -33.68% compared to the Sensex's modest gain of 1.89%, reinforcing the notion that GCM Commodity is currently overvalued.