Is Lovable Lingerie overvalued or undervalued?

As of 15 February 2023, Lovable Lingerie has moved from a very attractive valuation grade to a risky one. The company is currently overvalued, with a PE ratio of 98.27, significantly higher than its peers like Page Industries at 70.7 and Jubilant Food at 203.42. Additionally, Lovable Lingerie's EV to EBITDA stands at -13.62, indicating negative earnings before interest, taxes, depreciation, and amortization, which is concerning compared to its peer average.
The company's Price to Book Value is 0.82, suggesting it is trading below its book value, but the overall financial metrics indicate instability, particularly with a ROCE of -7.20% and a ROE of 0.84%. While Lovable Lingerie's recent stock performance shows a 1-month return of 18.38% compared to the Sensex's 3.88%, the longer-term outlook remains bleak with a year-to-date decline of 22.72%. This combination of high valuation ratios and poor financial performance reinforces the conclusion that Lovable Lingerie is overvalued in the current market.