Is Setubandhan Inf. overvalued or undervalued?

As of 15 January 2024, the valuation grade for Setubandhan Inf. has moved from expensive to risky, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued, given its troubling financial ratios, including a PE ratio of -5.30, an EV to EBITDA of -84.81, and a ROE of -4.12%. These figures suggest that the company is not generating sufficient earnings relative to its valuation metrics.
In comparison to its peers, Setubandhan Inf. stands out negatively against companies like Larsen & Toubro, which has a PE ratio of 34.21 and an EV to EBITDA of 17.35, indicating a much healthier financial position. Other peers, such as GMR Airports, also reflect a risky valuation but maintain a better outlook with a PE of 33.47. The recent stock performance shows Setubandhan Inf. outperforming the Sensex over the past week and month, but the longer-term returns highlight a concerning trend with a 3-year decline of 67.80% compared to the Sensex's 49.24% gain.