Is Global Vectra overvalued or undervalued?

As of 2 June 2025, the valuation grade for Global Vectra has moved from attractive to risky, indicating a significant deterioration in its investment appeal. The company is currently assessed as overvalued, particularly highlighted by its PE ratio of -326.27 and a Price to Book Value of 26.94, which are starkly unfavorable compared to its peers. For instance, Interglobe Aviation, which is rated fair, has a PE ratio of 29.17 and an EV to EBITDA of 13.00, showcasing a more favorable valuation landscape.
Additionally, Global Vectra's EV to EBITDA stands at 14.00, while its ROCE is a mere 3.24%, further emphasizing its underperformance relative to industry standards. The company's recent stock performance has been mixed, with a year-to-date return of -14.28% compared to the Sensex's gain of 5.66%, reinforcing the notion that the stock may not be a sound investment at its current valuation levels.