Is Route Mobile overvalued or undervalued?

As of 15 April 2025, the valuation grade for Route Mobile has moved from very attractive to attractive, indicating a shift in its perceived investment potential. The company is currently considered overvalued based on its financial metrics. The PE ratio stands at 19.33, while the EV to EBITDA ratio is 10.87, and the Price to Book Value is 2.65, suggesting that the stock may be priced higher than its fundamental value.
In comparison to peers, Route Mobile's valuation metrics are relatively high; for instance, its PE ratio is similar to that of a peer with a valuation of attractive, but the overall market sentiment appears less favorable. Notably, its ROCE is strong at 27.18%, which is commendable, yet the stock has underperformed against the Sensex, with a year-to-date return of -24.96% compared to the Sensex's 5.57%. This underperformance, coupled with the current valuation metrics, reinforces the conclusion that Route Mobile is overvalued at this time.