Is PG Electroplast overvalued or undervalued?

As of 20 August 2024, the valuation grade for PG Electroplast has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios highlight this assessment, with a PE ratio of 76.05, an EV to EBITDA of 43.99, and a Price to Book Value of 7.74, all of which are substantially higher than industry norms.
In comparison to its peers, PG Electroplast's valuation stands out unfavorably; for instance, Dixon Technologies has a PE ratio of 122.81, while Crompton Greaves Consumer is at a more attractive PE of 40.79. The high valuation ratios suggest that PG Electroplast is not only overvalued relative to its peers but also has underperformed in the short term, with a year-to-date stock return of -21.62% compared to a 5.63% return for the Sensex.