Is Next Mediaworks overvalued or undervalued?

As of 25 April 2023, the valuation grade for Next Mediaworks has moved from does not qualify to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued based on its current metrics, with a PE ratio of -3.08, an EV to EBITDA of -32.34, and a ROCE of -91.44%. These ratios suggest that the company is struggling financially, particularly when compared to peers such as D B Corp, which has a PE ratio of 12.8 and an EV to EBITDA of 7.27, and Jagran Prakashan, with a PE ratio of 12.15 and an EV to EBITDA of 5.88.
In the context of recent performance, Next Mediaworks has underperformed relative to the Sensex, with a year-to-date return of -17.08% compared to the Sensex's 5.59%. This further reinforces the view that the company is overvalued, as its financial ratios and stock performance do not align with a healthy valuation in the media and entertainment sector.