Is Jindal Photo overvalued or undervalued?

As of 24 May 2023, Jindal Photo's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued, with a PE ratio of 3.89, an EV to EBITDA ratio of 455.11, and a ROE of 23.33%. These figures suggest that despite a relatively low PE ratio, the high EV multiples indicate a premium valuation compared to its earnings and cash flows.
In comparison to its peers, Jindal Photo's valuation stands out as particularly high; for instance, Altius Telecom has a PE ratio of 52.97, while Embassy Office REIT shows an EV to EBITDA of 21.67, both of which are significantly lower than Jindal Photo's metrics. Additionally, the company's recent stock performance has lagged behind the Sensex, with a YTD return of -5.54% compared to the Sensex's 5.66%, further reinforcing the notion of overvaluation in the current market context.