Is MPS overvalued or undervalued?

As of 2 August 2023, the valuation grade for MPS has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, with a price-to-earnings (PE) ratio of 31.33, a price-to-book value of 9.46, and an EV to EBITDA ratio of 20.97. These ratios suggest that MPS is trading at a premium compared to its peers.
In comparison to its industry peers, D B Corp, which is rated very attractive, has a PE ratio of 12.8, while Navneet Education, rated attractive, has a PE ratio of 18.12. This stark contrast highlights MPS's overvaluation. Furthermore, despite MPS's strong returns, including a 32.97% year-to-date return compared to the Sensex's 5.62%, the elevated valuation metrics suggest that investors may be pricing in excessive growth expectations.