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 overvalued, with a price-to-earnings (PE) ratio of -0.75, a price-to-book value of 0.23, and an EV to EBITDA ratio of -0.04. These ratios suggest that the company is struggling financially, particularly with a return on capital employed (ROCE) of -48.46% and a return on equity (ROE) of -30.86%.
In comparison to its peers, GCM Commodity stands out unfavorably; for instance, Life Insurance has a PE ratio of 11.53 and an EV to EBITDA of 8.97, while Bajaj Finance shows a PE of 30.73 and an EV to EBITDA of 17.64. These comparisons highlight the substantial gap in financial health and valuation metrics between GCM Commodity and its more attractive peers. Additionally, GCM's stock has underperformed significantly against the Sensex, with a year-to-date return of -28.71% compared to the Sensex's 3.15%, reinforcing the notion that the company is overvalued in its current state.