Is Relic Tech. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Relic Tech. has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its negative PE ratio of -14.30 and EV to EBIT of -12.04, which suggest that it is not generating positive earnings relative to its valuation. Additionally, the EV to Sales ratio stands at 12.08, further highlighting the disconnect between its market price and financial performance.
In comparison to its peers, Relic Tech. shows stark contrasts; for instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance boasts a PE of 11.49, both indicating healthier valuations relative to their earnings. The company's recent stock performance has been volatile, with a year-to-date return of 230.22%, significantly outpacing the Sensex's 7.44%. However, the current valuation metrics suggest that investors should exercise caution, as the company's financial fundamentals do not support its high market price.