Is Perfect-Octave overvalued or undervalued?

As of 18 August 2025, the valuation grade for Perfect-Octave has moved from very expensive to risky. The company appears to be overvalued based on its current financial ratios. The PE ratio stands at -14.50, indicating negative earnings, while the EV to EBITDA ratio is also at -17.90. Additionally, the ROE is reported at -0.48%, further highlighting the company's struggles in generating returns for shareholders.
When comparing Perfect-Octave to its peers, Sun TV Network, which is rated fair, has a PE ratio of 13.35 and an EV to EBITDA of 8.16, while Zee Entertainment, rated attractive, shows a PE ratio of 14.59 and an EV to EBITDA of 7.68. These comparisons suggest that Perfect-Octave is significantly lagging behind its peers in terms of profitability and valuation metrics. Despite a recent stock return of 5.29% over the past week, which outperformed the Sensex return of 0.83%, the overall financial indicators suggest that Perfect-Octave is overvalued in its current market position.