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 investment attractiveness. The company is currently overvalued, as evidenced by its staggering PE ratio of -151.22 and an EV to EBITDA ratio of 171.65, which are both far from industry norms. Additionally, GKW's ROCE and ROE are negative at -0.44% and -0.27%, respectively, further highlighting its financial struggles.
In comparison to its peers, GKW's valuation metrics starkly contrast with those of Sundram Fasteners, which has a PE ratio of 37.75 and an EV to EBITDA of 22.63, and Sterling Tools, boasting a PE of 21.08 and an EV to EBITDA of 11.15. These comparisons underscore GKW's overvaluation in the auto components and equipment industry. Notably, while GKW's stock performance has not been reported, the Sensex has shown a slight decline of 1.55% over the past year, suggesting that GKW's valuation issues are not isolated but part of broader market challenges.