Is Looks Health overvalued or undervalued?

As of 25 April 2023, Looks Health's valuation grade has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company is currently assessed as overvalued, with a PE ratio of 5.25, an EV to EBITDA of -4.94, and a PEG ratio of 0.02, all of which suggest that the stock may not be a sound investment relative to its peers.
In comparison to its industry, Looks Health's PE ratio is starkly lower than that of Max Healthcare at 100.29 and Apollo Hospitals at 69.03, both of which are considered very expensive. Furthermore, the company's negative EV to EBITDA ratio highlights underlying operational challenges. Despite a recent one-month stock return of 8.89%, which outperformed the Sensex's 3.87%, the longer-term performance shows a concerning trend, with a one-year return of -10.09% compared to the Sensex's 7.61%. This reinforces the view that Looks Health is currently overvalued in the market.