Is Jauss Polymers overvalued or undervalued?

As of 25 April 2023, Jauss Polymers has moved from a grade of "does not qualify" to "risky," indicating a significant downgrade in its valuation outlook. The company is currently assessed as overvalued, primarily due to its negative PE ratio of -3.17 and EV to EBIT of -3.06, which suggest that the market is pricing in substantial risks. Additionally, the Price to Book Value stands at a low 0.37, further highlighting the company's struggles in generating shareholder value.
In comparison to its peers, Jauss Polymers shows stark contrasts; for instance, Supreme Industries has a PE ratio of 57.34, while Finolex Industries stands at 28.37, both indicating a much stronger market position. The company's recent stock performance has been poor, with a year-to-date return of -23.18%, significantly underperforming the Sensex's 5.61% return in the same period. This combination of poor financial ratios and unfavorable market performance reinforces the conclusion that Jauss Polymers is currently overvalued.