Is GKW overvalued or undervalued?

As of 1 August 2025, GKW's valuation grade has moved from risky to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently overvalued, with a PE ratio of -151.22, an EV to EBITDA of 171.65, and an EV to Sales ratio of 19.61. These figures suggest that GKW is not only struggling to generate profits but is also trading at a substantial premium compared to its peers.
In comparison, Sundram Fasteners, which is categorized as expensive, has a PE ratio of 37.75 and an EV to EBITDA of 22.63, while Sterling Tools, rated as attractive, has a PE ratio of 21.08 and an EV to EBITDA of 11.15. This stark contrast highlights GKW's overvaluation relative to its industry peers. Additionally, the company's recent stock performance has not been available for comparison, but the Sensex has shown a slight decline over the past month, further underscoring the challenges faced by GKW in the current market environment.