Is IMP Powers overvalued or undervalued?

As of 25 April 2023, the valuation grade for IMP Powers has moved from does not qualify to risky. The company is currently assessed as overvalued, given its negative PE ratio of -0.10, an EV to EBIT ratio of -4.63, and an EV to EBITDA ratio of -5.24. These figures indicate significant financial distress, particularly when compared to peers such as ABB, which has a PE ratio of 67.88 and an EV to EBITDA of 52.83, and BHEL, with a PE ratio of 166.73 and an EV to EBITDA of 72.83.
The stark contrast in valuation metrics highlights the challenges faced by IMP Powers within the heavy electrical equipment industry. Additionally, the company's stock has underperformed significantly over the past three years, with a return of -50.53% compared to a 49.19% gain in the Sensex, reinforcing the notion that it is overvalued at its current price of 6.06.