Is Shaival Reality overvalued or undervalued?

As of 5 May 2025, the valuation grade for Shaival Reality has moved from does not qualify to risky. The company appears to be overvalued based on its current financial ratios. The PE ratio stands at 35.30, while the EV to EBITDA and EV to EBIT ratios are both at -35.04, indicating significant concerns regarding profitability. Additionally, the ROCE is at -2.52% and the ROE is only 1.27%, which further underscores the company's financial challenges.
In comparison to its peers, Shaival Reality's valuation metrics are less favorable. DLF Ltd. has a PE ratio of 46.64 and Godrej Properties Ltd. shows a PE of 53.1, both categorized as risky or very expensive. The market sentiment around Shaival Reality is reflected in its stagnant stock performance, with a notable decline of 7.72% over the past three years compared to a 52.39% increase in the Sensex. Overall, Shaival Reality is deemed overvalued given its poor financial ratios and the performance of its peers.