Is Simplex Infra overvalued or undervalued?

As of 14 October 2020, Simplex Infra's valuation grade has moved from attractive to risky, indicating a significant shift in its perceived investment quality. The company appears to be overvalued, particularly when considering its staggering PE ratio of 1929.75 and an EV to EBITDA ratio of 175.58, which are far above industry norms. Additionally, the ROCE stands at a concerning -1.25%, highlighting inefficiencies in generating returns on capital. In comparison to its peers, Simplex Infra's valuation metrics starkly contrast with those of Larsen & Toubro, which boasts a PE ratio of 34.21 and an EV to EBITDA of 17.35, categorizing it as attractive. Other peers like Siemens and CG Power & Ind are also significantly more expensive, yet they do not exhibit the extreme ratios seen in Simplex Infra. The company's recent stock performance shows a remarkable 130.24% return over the past year, outpacing the Sensex's 7.62%, but this does not mitigate the concerns raised by its current valuation metrics.