Is GSS Infotech overvalued or undervalued?

As of 14 February 2025, GSS Infotech's valuation grade has moved from attractive to risky, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued, given its troubling financial ratios, including a PE ratio of -70.89, an EV to EBITDA of 164.73, and a ROE of -0.39%. These figures suggest that the company's earnings are not only negative but also that it is trading at an exorbitant multiple relative to its earnings potential.
In comparison to its peers, GSS Infotech's valuation metrics starkly contrast with those of TCS, which has a PE ratio of 25.23 and an EV to EBITDA of 17.63, and Infosys, with a PE of 24.32 and an EV to EBITDA of 15.83. Such comparisons highlight the significant risk associated with GSS Infotech's current valuation. Additionally, while the company has shown some short-term stock performance improvement against the Sensex, with a 1-week return of 3.42% compared to the Sensex's 1.39%, the long-term outlook remains bleak, as evidenced by a staggering 61.71% decline over the past year.