Is GMR Airports overvalued or undervalued?

As of 12 November 2020, GMR Airports' valuation grade has moved from fair to risky, indicating a significant deterioration in its investment appeal. The company is currently overvalued, as evidenced by its troubling financial ratios, including a PE ratio of -98.31, a price-to-book value of -36.40, and an EV to EBITDA ratio of 33.47. These figures highlight severe underlying issues, particularly the negative earnings and book value.
In comparison to its peers, GMR Airports stands out unfavorably; for instance, Larsen & Toubro, which is rated attractive, has a PE ratio of 34.21 and an EV to EBITDA of 17.35. Other peers like Siemens and CG Power & Ind are categorized as very expensive, with PE ratios of 56.88 and 107.03, respectively. The stark contrast in valuation metrics underscores GMR Airports' precarious position in the transport infrastructure sector. Despite a strong historical performance over the long term, recent stock performance relative to the Sensex shows a decline of 0.15% over the past year, further supporting the conclusion that the company is currently overvalued.