Is Kemistar Corp. overvalued or undervalued?

As of 31 July 2024, the valuation grade for Kemistar Corp. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. Key financial ratios include a PE Ratio of 80.86, an EV to EBIT of 88.23, and a Price to Book Value of 4.38, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Kemistar Corp.'s PE Ratio is notably lower than MMTC Ltd. at 119.39 and Elitecon International at 131.08, but significantly higher than Optiemus Infracom Ltd. at 82.35, which is rated as fair. Additionally, the company's ROE stands at 3.31%, which is relatively low compared to the industry standards. Despite a strong one-year return of 100.00%, the year-to-date performance shows a decline of 18.80%, contrasting with the Sensex's gain of 5.58%, reinforcing the notion that the stock may not be a sound investment at its current valuation.