Is Invigorated Bus. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Invigorated Bus. has moved from risky to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, particularly given its negative PE ratio of -28.42 and an EV to EBITDA ratio of -35.20, which are stark contrasts to its peers. For instance, Bajaj Finance has a PE ratio of 35.82 and an EV to EBITDA of 19.41, while Life Insurance boasts a PE of 11.36 and an EV to EBITDA of 8.82, highlighting the relative undervaluation of Invigorated Bus.
Despite the negative ratios, the company's valuation grade suggests that it may be positioned for recovery or growth, especially as it has outperformed the Sensex in the short term with a 1-week stock return of 5.53% compared to the Sensex's 1.48%. However, the longer-term performance shows a decline, with a 1-year return of -26.61%, indicating that investors should approach with caution while recognizing the potential upside in the current valuation context.