Is Kohinoor Foods overvalued or undervalued?

As of 17 May 2022, Kohinoor Foods has moved from a valuation grade of does not qualify to risky. The company is currently overvalued based on several key financial ratios. The PE ratio stands at -10.25, indicating negative earnings, while the EV to EBITDA ratio is exceptionally high at 197.36, suggesting that the company's valuation is not justified by its earnings before interest, taxes, depreciation, and amortization. Additionally, the EV to Sales ratio is 9.41, further highlighting the overvaluation.
In comparison to its peers, Kohinoor Foods' valuation metrics are significantly worse. For instance, KRBL, which is rated as attractive, has a PE ratio of 17.89 and an EV to EBITDA of 12.32, while Chamanlal Setia, rated as fair, shows a PE ratio of 18.42 and an EV to EBITDA of 12.35. The stark contrast in these ratios indicates that Kohinoor Foods is not only overvalued but also struggling relative to its competitors. Furthermore, the company's recent stock performance has been disappointing, with a year-to-date return of -13.98%, compared to a 5.59% gain in the Sensex, reinforcing the notion of its overvaluation.