Is KBC Global overvalued or undervalued?

As of 10 July 2023, KBC Global's valuation grade has moved from fair to risky, indicating a significant deterioration in its financial standing. The company is currently overvalued, as evidenced by its negative PE ratio of -5.18 and a price-to-book value of just 0.23, which suggests that the market is pricing the stock well below its book value. Additionally, the EV to EBITDA ratio stands at 11.45, reflecting a premium valuation despite the underlying financial challenges.
In comparison to its peers, KBC Global's metrics are concerning; for instance, its PEG ratio is at 0.00, which typically indicates no growth expectations. Notably, its return on equity (ROE) is negative at -4.35%, further emphasizing the company's struggles. While KBC Global has outperformed the Sensex in the short term over the past week and month, with returns of 2.63% and 5.41% respectively, the longer-term performance remains dismal, with a year-to-date decline of -54.91%. This stark contrast reinforces the notion that KBC Global is currently overvalued in the market.