Is Raasi Refractor overvalued or undervalued?

As of 12 November 2024, the valuation grade for Raasi Refractor has moved from does not qualify to risky. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a PE Ratio of 11.78, an EV to EBIT of 15.55, and a negative Price to Book Value of -0.89, indicating potential concerns about its financial health.
In comparison to its peers, Raasi Refractor's PE Ratio of 14.34 is significantly lower than that of Vesuvius India, which stands at 48.3, and RHI Magnesita, at 46.14, both categorized as very expensive. Additionally, Raasi's EV to EBITDA of 11.76 is higher than the industry average, suggesting that the market may be pricing in more risk than warranted. Despite recent stock performance showing a 10.24% return over the past week compared to a modest 1.42% for the Sensex, the overall valuation indicates that Raasi Refractor is overvalued in the current market context.