Is Parshva Enterpr. overvalued or undervalued?

As of 26 May 2022, the valuation grade for Parshva Enterprises Ltd. moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its high PE ratio of 254.44, an EV to EBITDA ratio of 255.10, and a Price to Book Value of 18.52. These ratios suggest that the stock is trading at a substantial premium compared to its earnings and book value.
In comparison to its peers, Parshva Enterprises Ltd. stands out with a PE ratio of 254.44, which is considerably higher than the industry average, indicating that investors are paying much more for each unit of earnings. Additionally, the company's ROCE is only 2.85%, and ROE is at 1.50%, further highlighting the inefficiency in generating returns relative to its market valuation. While the stock has outperformed the Sensex in the short term with a 1Y return of 58.74% compared to the Sensex's 7.55%, the overall valuation metrics suggest that it may not be sustainable at these elevated levels.