Is Paras Defence overvalued or undervalued?

As of 17 November 2021, the valuation grade for Paras Defence has moved from does not qualify to very expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE Ratio of 104.53, an EV to EBITDA of 67.36, and a Price to Book Value of 10.37. These figures indicate that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Paras Defence's PE Ratio is substantially higher than Hindustan Aeronautics Ltd. at 39.90 and Bharat Electronics Ltd. at 53.67, both of which are also classified as very expensive. Additionally, the PEG Ratio of 1.14 suggests that the growth expectations are not sufficient to justify the high valuation. While Paras Defence has outperformed the Sensex with a year-to-date return of 60.35% compared to the Sensex's 5.56%, this strong performance does not alter the conclusion that the stock is overvalued in the current market.