Is POCL Enterprises overvalued or undervalued?

As of 8 August 2024, the valuation grade for POCL Enterprises has moved from fair to expensive. The company is currently considered overvalued based on its financial ratios. Key metrics include a PE ratio of 20.37, an EV to EBITDA of 11.98, and a PEG ratio of 0.27, which suggests that while the company has strong earnings growth potential, its current price does not reflect a favorable valuation compared to its earnings.
In comparison with peers, POCL Enterprises' PE ratio is higher than Vedanta's 12.87, which is categorized as very attractive, but lower than Hindustan Zinc's 20.37, which is deemed very expensive. The EV to EBITDA ratio of 11.98 also positions POCL Enterprises in a relatively expensive bracket compared to Vedanta. Despite a strong return of 205.74% over the past year, the recent stock performance has lagged behind the Sensex, which returned 7.63% in the same period, reinforcing the notion that the stock may be overvalued at its current price of 227.90.