Is GCM Commodity overvalued or undervalued?

As of 22 August 2025, the valuation grade for GCM Commodity has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of -0.75, an EV to EBIT of -0.04, and a ROCE of -48.46%. These ratios suggest that the company is struggling financially, which is further evidenced by its negative returns over the past year and five years, where it has underperformed compared to the Sensex.
In comparison to its peers, GCM Commodity's valuation stands out unfavorably. For instance, Life Insurance is rated very attractive with a PE ratio of 11.55, while Bajaj Finance is categorized as very expensive with a PE ratio of 31.91. This stark contrast highlights GCM's poor financial health and valuation metrics relative to its industry. Overall, the combination of negative ratios and the company's performance relative to its peers reinforces the conclusion that GCM Commodity is overvalued in the current market.