Is Goyal Associates overvalued or undervalued?

As of 26 July 2024, Goyal Associates has moved from a fair to a very attractive valuation grade, indicating a significant improvement in its investment appeal. The company is currently undervalued, with a PE ratio of 6.56, an EV to EBIT of 7.47, and a PEG ratio of 0.27, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Goyal Associates stands out with a much lower PE ratio than Life Insurance at 12.54 and Bajaj Finance Ltd. at 35.01, both of which are considered expensive. Additionally, the company's EV to EBITDA ratio of 7.47 is more favorable than many competitors in the sector. Despite recent stock performance lagging behind the Sensex, particularly in the year-to-date and one-year periods, the long-term returns over five and ten years have been impressive, reinforcing the attractiveness of the current valuation.