Is Relaxo Footwear overvalued or undervalued?
As of November 11, 2024, Relaxo Footwear is considered very expensive with a PE ratio of 65.60 and has underperformed significantly with a -45.23% return over the past year, indicating it is overvalued compared to its peers.
As of 11 November 2024, the valuation grade for Relaxo Footwear has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 65.60, a Price to Book Value of 5.33, and an EV to EBITDA ratio of 28.99. These ratios highlight a premium valuation compared to its peers.In comparison, Metro Brands has a PE ratio of 95.29 and an EV to EBITDA of 44.90, while V-Guard Industries is considered fairly valued with a PE of 52.15 and an EV to EBITDA of 31.99. The stark contrast in these ratios suggests that Relaxo Footwear's valuation is not justified relative to its performance metrics. Additionally, the company's stock has underperformed significantly over the past year, with a return of -45.23% compared to the Sensex's 7.58%, reinforcing the notion that it is currently overvalued.
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