Is SJS Enterprises overvalued or undervalued?

As of 5 May 2025, the valuation grade for SJS Enterprises has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 30.05, an EV to EBITDA of 17.78, and a Price to Book Value of 5.23, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, SJS Enterprises has a higher PE ratio than Altius Telecom, which stands at 52.97, and a similar EV to EBITDA ratio to Embassy Office REIT at 21.67. The PEG ratio of SJS Enterprises is 0.80, which is relatively attractive, but when viewed alongside its high valuation metrics, it reinforces the conclusion of overvaluation. Notably, SJS Enterprises has outperformed the Sensex over the past year with a return of 52.49% compared to the Sensex's 7.55%, which may contribute to the inflated valuation perception.