Is OTCO Intl overvalued or undervalued?

As of 14 November 2025, the valuation grade for OTCO Intl has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios highlight this assessment: the PE ratio stands at an extraordinarily high 455.83, while both the EV to EBIT and EV to EBITDA ratios are negative at -15.34, suggesting underlying operational challenges. Additionally, the ROCE is at -2.42%, further emphasizing the company's struggles to generate returns on capital.
In comparison to its peers, OTCO Intl's valuation metrics are starkly different. For instance, TCS, which is rated attractive, has a PE ratio of 22.34, while Infosys, rated fair, has a PE ratio of 22.19. This stark contrast illustrates how OTCO Intl is positioned unfavorably within its industry. Moreover, OTCO's stock has underperformed relative to the Sensex, with a year-to-date return of -11.90% compared to the Sensex's 8.22%, reinforcing the notion of overvaluation amidst a challenging operational backdrop.