Is IEC Education overvalued or undervalued?

As of 2 July 2024, the valuation grade for IEC Education has moved from does not qualify to risky. The company appears to be overvalued given its negative PE ratio of -30.92 and EV to EBIT and EV to EBITDA ratios also at -32.59. Additionally, the return on capital employed (ROCE) is at -1.95%, and the return on equity (ROE) is -0.70%, indicating poor financial performance.
In comparison to its peers, IEC Education's valuation contrasts sharply with NIIT Learning, which is rated very attractive with a PE ratio of 20.47 and an EV to EBITDA of 11.83. Other peers like NIIT and Compucom Software are also rated risky but have significantly higher PE ratios of 38.44 and 119.44, respectively. Given these metrics, IEC Education is overvalued in its sector, particularly as it has underperformed against the Sensex year-to-date with a return of -39.93% compared to the Sensex's 5.59%.