Is Orissa Minerals overvalued or undervalued?

As of 14 November 2022, the valuation grade for Orissa Minerals moved from very expensive to risky. The company appears to be overvalued, given its exceptionally high PE ratio of 648.22, an EV to EBITDA of 143.05, and a PEG ratio of 4.54. These metrics indicate significant overvaluation compared to its peers, such as Altius Telecom, which has a PE ratio of 52.97, and Sagility India, with a PE ratio of 33.73.
The negative price to book value of -284.29 and negative return on equity further underscore the financial challenges faced by Orissa Minerals. While the stock has shown strong returns over the longer term, outperforming the Sensex over 3 and 5 years, its recent performance has lagged, with a year-to-date return of -26.33% compared to the Sensex's 5.59%. This combination of high valuation ratios and poor recent performance suggests that Orissa Minerals is not a favorable investment at its current price of 5250.35.