Is Palm Jewels overvalued or undervalued?

As of 12 February 2025, the valuation grade for Palm Jewels has moved from very attractive to attractive, indicating a shift in perception regarding its value. The company appears to be overvalued at this time. Key ratios include a PE ratio of 27.38, an EV to EBITDA of 29.44, and a PEG ratio of 0.82, which suggest that while the growth potential is favorable, the current price may not justify the earnings relative to its peers.
In comparison with its industry peers, Palm Jewels' PE ratio is significantly lower than Titan Co. Ltd., which stands at 94.61, and Kalyan Jewellers, which is at 81.3, indicating that Palm Jewels may be priced more attractively in terms of earnings. However, it is also worth noting that P N Gadgil Jewellers, which is also rated attractive, has a PE ratio of 35.11, suggesting that there are alternatives in the market that could offer better value. Recent performance shows that while Palm Jewels has outperformed the Sensex over the past year with a return of 34.9%, its year-to-date performance of -3.85% contrasts sharply with the Sensex's 5.60% gain, reinforcing concerns about its current valuation.