Is Radaan Media. overvalued or undervalued?

As of 9 November 2023, Radaan Media's valuation grade has moved from does not qualify to risky, indicating a shift in perception regarding its investment potential. The company is currently assessed as overvalued, particularly given its PE ratio of 21.61, which is significantly higher than peers like PVR Inox, which has a PE ratio of 11.19, and Prime Focus, which, despite its high valuation, is at 1147.67. Additionally, Radaan Media's EV to EBITDA stands at 18.16, while its PEG ratio is notably low at 0.13, suggesting that the market may be pricing in growth that the company has yet to deliver.
In comparison to its peers, Radaan Media's financial metrics reveal a concerning picture, especially with a negative book value impacting its Price to Book ratio of -1.89. While the company has shown strong returns over the past year, outperforming the Sensex with an 82.61% return compared to the index's 7.58%, the overall valuation metrics suggest that the stock is not justified at its current price of 4.20, especially when considering the broader market and peer performance.