Is Jash Engineering overvalued or undervalued?

As of 20 December 2023, Jash Engineering's valuation grade has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a PE ratio of 40.00, a Price to Book Value of 8.10, and an EV to EBITDA ratio of 27.37. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Jash Engineering's PE ratio is notably higher than that of similar companies, which typically range around 25-30 for the industry. Additionally, the company's PEG ratio stands at 1.54, further emphasizing its overvaluation relative to growth expectations. Despite a recent stock return of 2.44% over the past week, outperforming the Sensex's 1.38%, the overall valuation metrics indicate that Jash Engineering is not a favorable investment at its current price of 568.60.