Is ITI overvalued or undervalued?

As of 30 May 2023, ITI's valuation grade has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued based on its financial metrics. Key ratios include a PE ratio of -124.78, an EV to EBITDA of -538.39, and a Price to Book Value of 19.20, all of which suggest considerable concerns regarding profitability and valuation.
In comparison to its peers, ITI's financials stand out negatively; for instance, Indus Towers has a PE ratio of 10.58 and an EV to EBITDA of 5.93, while HFCL shows a PE of 74.32 and an EV to EBITDA of 31.30. These comparisons highlight that ITI is not only underperforming but also carries a higher risk profile relative to its industry counterparts. Despite a recent strong performance with a 39.31% return over the past month compared to the Sensex's 3.86%, the overall financial indicators suggest that ITI remains overvalued in the current market environment.