Is JPT Securities overvalued or undervalued?

As of 12 November 2024, JPT Securities' valuation grade has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company appears to be overvalued, given its troubling financial ratios, including a PE ratio of -3.25, an EV to EBITDA of -5.11, and a ROE of -15.19%. These figures suggest that the company is struggling to generate profits and is facing considerable challenges in its operations.
In comparison to peers, JPT Securities stands out negatively; for instance, Life Insurance has a PE ratio of 12.54 and an EV to EBITDA of 9.89, while Bajaj Finance is at a staggering PE of 35.01. The stark contrast in these ratios highlights JPT's underperformance relative to its industry. Furthermore, while JPT Securities has shown a 4.9% return over the past week, this pales in comparison to the Sensex's 1.4% return, reinforcing the notion that the stock is not performing well in the broader market context. Overall, the combination of poor financial metrics and unfavorable peer comparisons suggests that JPT Securities is overvalued.