Is IDream Film overvalued or undervalued?

As of 25 April 2023, the valuation grade for IDream Film has moved from does not qualify to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued given its negative PE ratio of -1.98, a price to book value of -0.44, and an EV to EBITDA of -5.98. These ratios suggest that the company is struggling financially, particularly with negative returns on capital employed and equity.
When compared to peers, IDream Film's valuation metrics are concerning, especially against companies in the same industry. For instance, while IDream Film has a PE ratio of -1.98, other comparable firms typically exhibit positive ratios, highlighting the disparity. Additionally, IDream Film's stock has outperformed the Sensex over the past year, with a return of 54.91% compared to the Sensex's 7.61%, but this performance does not mitigate the underlying financial challenges. Overall, IDream Film is assessed as overvalued based on its current financial ratios and market position.