Is RBZ Jewellers Lt overvalued or undervalued?

As of 6 February 2024, the valuation grade for RBZ Jewellers Ltd has moved from risky to does not qualify. The company appears to be overvalued based on its current financial metrics. Key ratios include a PE Ratio of 14.50, an EV to EBIT of 10.89, and a ROE of 17.30%. In comparison, peers such as Titan Co. Ltd have a PE Ratio of 94.61, while PC Jeweller Ltd, which is rated very attractive, has a significantly lower PE of 13.06.
The valuation suggests that RBZ Jewellers Ltd is not positioned favorably against its peers, particularly given the high valuations of competitors like Kalyan Jewellers at a PE of 81.3. Furthermore, the company's recent stock performance shows a year-to-date decline of 23.83%, contrasting with a 5.54% gain in the Sensex, reinforcing the notion of overvaluation in the current market context.