Is Hinduja Global overvalued or undervalued?

As of 14 November 2022, Hinduja Global's valuation grade has moved from very attractive to risky, indicating a significant shift in its market perception. The company is currently assessed as overvalued, primarily due to its troubling financial ratios, including a PE ratio of -24.40, an EV to EBITDA of 0.13, and a negative ROCE of -4.94%. These figures suggest that the company is struggling to generate positive returns and is not effectively utilizing its capital.
In comparison to its peers, Hinduja Global's valuation metrics starkly contrast with those of Firstsource Solutions, which has a PE ratio of 44.82 and an EV to EBITDA of 23.74, and eClerx Services, with a PE of 32.59 and an EV to EBITDA of 21.00. This disparity highlights the challenges Hinduja Global faces in attracting investor confidence. Additionally, while the company's stock has seen a recent uptick, its year-to-date return of -27.20% starkly underperforms the Sensex's gain of 5.63%, further reinforcing the notion of overvaluation.