Is Suncare Traders overvalued or undervalued?

As of 26 July 2023, Suncare Traders has moved from a grade of "does not qualify" to "risky." The company is currently considered undervalued. Key ratios include a PE Ratio of 21.93, a Price to Book Value of 0.55, and a PEG Ratio of 0.43, which suggests potential for growth relative to its price.
In comparison to its peers, Suncare Traders' PE ratio is higher than that of similar companies in the trading and distribution sector, which typically exhibit lower valuations. For instance, if we consider a peer with a PE ratio of around 15, Suncare's valuation appears elevated. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -15.69% compared to the Sensex's positive return of 5.61%. This underperformance further supports the notion that Suncare Traders is undervalued in the current market context.