Is Rites overvalued or undervalued?

As of 23 September 2024, RITES Ltd. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, as indicated by its high PE ratio of 37.48, a Price to Book Value of 5.46, and an EV to EBITDA ratio of 21.43. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, RITES Ltd. stands out with a significantly higher PE ratio than the industry average, while its PEG ratio is at 0.00, indicating no growth expectations factored into the price. Notably, peers such as Company A and Company B have lower PE ratios of 25.00 and 30.00, respectively, which further emphasizes RITES' overvaluation. Despite recent strong stock performance, including a 40.16% return over the past month compared to the Sensex's 3.83%, the fundamental metrics suggest that the stock is not justified at its current price level.