Is Omkar Overseas overvalued or undervalued?

As of 12 November 2024, the valuation grade for Omkar Overseas has moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company appears to be overvalued given its negative PE ratio of -0.90, an EV to EBITDA ratio of -0.90, and a Price to Book Value of 3.23. These ratios suggest that the company's earnings and cash flows are not only negative but also that it is trading at a premium relative to its book value.
In comparison to its peers, Omkar Overseas stands out with a PE ratio of -0.90, while MMTC, another peer, has a PE ratio of 119.39, and Optiemus Infra is at 82.35, both indicating a stark contrast in valuation metrics. The company's return performance has been impressive over the long term, with a 3-year return of 187.3% compared to the Sensex's 49.17%, but this does not mitigate the current overvaluation concerns. Overall, Omkar Overseas is assessed to be overvalued in the current market context.