Is Sumitomo Chemi. overvalued or undervalued?

As of 14 February 2020, the valuation grade for Sumitomo Chemical India Ltd. has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 51.25, a Price to Book Value of 8.93, and an EV to EBITDA of 40.28, all of which suggest that the stock is trading at a premium compared to its earnings and asset values.
In comparison to its peers, Sumitomo Chemical India Ltd. stands out with a PE ratio of 51.25, while its closest competitor has a lower valuation, reinforcing its overvalued status. Additionally, the company's return on capital employed (ROCE) is a strong 23.07%, but this does not offset the high valuation metrics. Notably, while the stock has outperformed the Sensex over the past week and month, it has lagged behind in year-to-date and longer-term returns, further supporting the conclusion that it is overvalued in the current market context.