Is Raja Bahadur Int overvalued or undervalued?

As of 31 October 2025, the valuation grade for Raja Bahadur Int has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently overvalued, as evidenced by a PE ratio of -229.60, a Price to Book Value of 9.74, and an EV to EBITDA ratio of 22.42. These ratios suggest that the market is pricing the stock at an unsustainable level compared to its earnings and book value.
In comparison to its peers, Raja Bahadur Int's valuation stands out unfavorably. For instance, K P R Mill Ltd has a PE ratio of 44.28 and an EV to EBITDA of 29.31, while Vardhman Textile shows a PE of 14.96 and an EV to EBITDA of 3.88, both of which highlight the excessive valuation of Raja Bahadur Int. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -16.20% compared to the Sensex's gain of 7.42%, further reinforcing the notion that the stock is overvalued in the current market environment.