Is Raja Bahadur Int overvalued or undervalued?

As of 23 September 2025, the valuation grade for Raja Bahadur Int has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of -111.88, an EV to EBITDA of 22.21, and a Price to Book Value of 9.49, all of which suggest that the stock is trading at unsustainable levels compared to its earnings and asset values.
When compared to peers, Raja Bahadur Int's valuation stands out unfavorably; for instance, K P R Mill Ltd has a PE Ratio of 46.3 and an EV to EBITDA of 30.66, while Vardhman Textile, which is considered fairly valued, has a PE Ratio of 14.19 and an EV to EBITDA of 10.3. Additionally, Raja Bahadur Int's recent stock performance has lagged behind the Sensex, particularly with a year-to-date return of -18.34% compared to the Sensex's 5.07%. This further reinforces the conclusion that the company is overvalued in the current market environment.