Is GCM Commodity overvalued or undervalued?

As of 19 August 2025, GCM Commodity's valuation grade has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios reflect this, with a PE ratio of -0.75, an EV to EBIT of -0.04, and a ROCE of -48.46%, all suggesting substantial financial distress.
In comparison to its peers, GCM Commodity's valuation metrics starkly contrast with those of Life Insurance, which boasts a PE ratio of 11.61 and an EV to EBITDA of 9.04, indicating a much healthier financial position. Other peers like Bajaj Finance and Bajaj Finserv also demonstrate higher valuations with PE ratios of 32.19 and 33.08, respectively. Additionally, GCM's recent stock performance shows a 10.37% return over the past week, significantly outperforming the Sensex's 1.76% return, but this is overshadowed by a year-to-date decline of 28.71% compared to the Sensex's gain of 4.49%.