Is MPS Pharmaa overvalued or undervalued?

As of 12 November 2024, MPS Pharmaa's valuation grade has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company is currently deemed overvalued, with a PE ratio of -5.22 and an EV to EBITDA of -2.59, both of which suggest severe operational challenges. Additionally, the ROCE stands at -48.75%, highlighting inefficiencies in capital utilization.
When compared to peers, MPS Pharmaa's metrics are starkly unfavorable. For instance, MMTC, also categorized as risky, has a PE ratio of 119.39, while Optiemus Infra, which is fairly valued, boasts a PE of 82.35. Notably, MPS Pharmaa's PEG ratio is 0.00, indicating no expected growth, further reinforcing its overvaluation status. Despite a remarkable 666.67% return over the past five years, this performance contrasts sharply with the broader market, as evidenced by the Sensex's 211.54% return over the same period, suggesting that MPS Pharmaa's current price may not be sustainable given its financial metrics.