Is Raw Edge Indust. overvalued or undervalued?

As of 19 November 2025, the valuation grade for Raw Edge Industries has moved from attractive to very attractive. Despite this positive change in grade, the company appears to be overvalued based on its current financial ratios. The PE ratio stands at -16.19, indicating negative earnings, while the EV to EBITDA ratio is at 16.39, which is relatively high compared to peers. Additionally, the ROCE is only 3.24%, and the ROE is negative at -7.05%, suggesting inefficiencies in generating returns.
In comparison to its peers, Raw Edge Industries' valuation metrics are concerning. For instance, Coal India, also rated very attractive, has a PE ratio of 7.49 and an EV to EBITDA of 4.87, while NMDC, rated attractive, has a PE of 9.41 and an EV to EBITDA of 6.66. These comparisons highlight that Raw Edge Industries is not only underperforming in profitability but also trading at a premium relative to its peers. Furthermore, the company's stock has significantly underperformed against the Sensex, with a year-to-date return of -39.63% compared to the Sensex's 9.02%, reinforcing the view that it is currently overvalued.