Is Kinetic Trust overvalued or undervalued?

As of 12 November 2024, Kinetic Trust's valuation grade has moved from does not qualify to risky, indicating a significant concern regarding its financial health. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of -7.77 and an EV to EBITDA of -9.87, which are both negative and suggest that the company is not generating profits. Additionally, the ROCE stands at -5.36% and ROE at -2.72%, further highlighting the company's struggles in generating returns on capital and equity.
In comparison to its peers, Kinetic Trust's valuation metrics are starkly unfavorable. For instance, Life Insurance, which is rated fair, has a PE ratio of 12.54 and an EV to EBITDA of 9.89, showcasing a much healthier financial position. Other peers like Bajaj Finance and Bajaj Finserv are categorized as very expensive, with PE ratios of 35.01 and 35.83, respectively. Given these comparisons and the negative performance indicators, Kinetic Trust is deemed overvalued despite its recent stock performance, which has outpaced the Sensex in the short term.