Is SJ Corp overvalued or undervalued?

As of 12 November 2024, SJ Corp's valuation grade has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company appears to be overvalued based on its current metrics, with a PE Ratio of 44.67, an EV to EBIT of 45.17, and a Price to Book Value of 5.16. These ratios suggest that the stock is priced significantly higher than its earnings and book value would typically justify.
In comparison to its peers, SJ Corp's valuation metrics stand out unfavorably. For instance, Titan Company, which is rated fair, has a PE of 94.61, while P N Gadgil Jewellers, rated attractive, has a PE of 35.11. This places SJ Corp at a disadvantage, as its high ratios do not align with the performance of its peers. Additionally, the company's return over the last three years has been impressive at 77.38%, significantly outpacing the Sensex's 49.17%. However, this performance does not mitigate the current overvaluation indicated by its ratios.