Is Humming Bird Edu overvalued or undervalued?

As of 15 July 2025, the valuation grade for Humming Bird Edu has moved from risky to very expensive, indicating a significant concern regarding its current market valuation. The company is deemed overvalued based on its high valuation ratios, including a PE ratio of 57.62, an EV to EBITDA ratio of 56.11, and a Price to Book Value of 35.44. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Humming Bird Edu's valuation stands out starkly; for instance, Veranda Learning has a PE ratio of 178.53, while CP Capital, considered very attractive, has a PE of just 6.22. This stark contrast highlights that Humming Bird Edu is significantly overvalued relative to its peers. While the company has shown impressive stock returns over the past year, outperforming the Sensex with a return of 64.91% compared to the Sensex's 2.36%, the current valuation metrics suggest caution for potential investors.