Is Step Two Corp. overvalued or undervalued?

As of 23 October 2025, the valuation grade for Step Two Corp. has moved from very expensive to risky, indicating a significant shift in perception. The company appears to be overvalued based on its current financial metrics, with a PE ratio of -17.62, an EV to EBIT of -7.15, and a ROE of -24.19%. These ratios suggest that the company's financial performance is under considerable strain, particularly when compared to peers such as Bajaj Finance, which has a PE ratio of 39.07, and Life Insurance, with a PE of 11.68.
In terms of peer comparison, Step Two Corp.'s valuation metrics are starkly unfavorable, as it shows negative earnings ratios while its peers maintain positive valuations. The EV to Sales ratio of 5.29 further emphasizes the company's overvaluation relative to its revenue generation capabilities. Additionally, the recent stock performance has lagged behind the Sensex, with a year-to-date return of -4.54% compared to the Sensex's 8.21%, reinforcing the notion that Step Two Corp. is currently overvalued in the market.