Is Regis Industries overvalued or undervalued?

As of 11 December 2024, the valuation grade for Regis Industries has moved from very expensive to risky. This indicates a significant shift in perception regarding the company's valuation. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of -181.02, an EV to EBIT of -180.99, and a Price to Book Value of 6.90. These ratios suggest that the company's earnings are not only negative but also that its market valuation is disproportionately high compared to its book value.
In comparison to its peers, Regis Industries stands out unfavorably. For instance, Life Insurance has a PE ratio of 12.54 and an EV to EBITDA of 9.89, reflecting a more stable valuation. Additionally, Bajaj Finance Ltd., despite being classified as very expensive, has a PE ratio of 35.01, which further highlights the disparity in valuation metrics. The stock has underperformed year-to-date with a return of -32.5% compared to the Sensex's 5.56%, reinforcing the notion that Regis Industries is currently overvalued in the market.