Is Oscar Global overvalued or undervalued?

As of 12 September 2024, Oscar Global's valuation grade has moved from does not qualify to risky, indicating a significant shift in its financial standing. The company is currently assessed as overvalued, given its negative PE ratio of -3.30 and an EV to EBITDA ratio of -2.43, which highlights its struggles in generating positive earnings. Additionally, the ROCE stands at -17.54%, further emphasizing the company's inefficiency in utilizing its capital. In comparison to its peers, Oscar Global's financial metrics starkly contrast with those of Bhartiya International, which boasts a PE ratio of 61.23, and Lehar Footwears, with a PE of 40.42. This disparity suggests that Oscar Global is not only underperforming but is also trading at a premium compared to its more successful counterparts in the Gems, Jewellery, and Watches industry. The company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -54.95% compared to the Sensex's 5.66%, reinforcing the notion of overvaluation.