Is Prism Johnson overvalued or undervalued?

As of 14 November 2024, the valuation grade for Prism Johnson has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued, with a PE ratio of -268.22, an EV to EBIT of -122.26, and an EV to EBITDA of 19.01, which are significantly concerning metrics.
When compared to its peers in the Cement & Cement Products industry, Prism Johnson stands out with a notably high EV to EBITDA ratio, while its negative PE ratio and PEG ratio of 0.00 suggest severe profitability issues. For instance, while Prism Johnson's PE ratio is -268.22, a peer like ACC Limited has a PE ratio of approximately 25. This stark contrast highlights the challenges Prism Johnson faces in generating earnings. Additionally, the company's recent stock performance shows a decline of 18.40% year-to-date, compared to a 5.61% gain in the Sensex, further reinforcing the notion that it is currently overvalued.