Is Supreme Infra. overvalued or undervalued?

As of 25 April 2023, the valuation grade for Supreme Infra. has moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, given its negative PE ratio of -0.17, an EV to EBITDA of -50.15, and a PEG ratio of 0.00. These ratios suggest significant financial distress, particularly when compared to peers like Larsen & Toubro, which has a PE ratio of 34.21 and an EV to EBITDA of 17.35, indicating a much healthier valuation.
In contrast, Supreme Infra.'s financial metrics reveal troubling signs, with an EV to Capital Employed of -1.17 and an EV to Sales ratio of 41.58, further underscoring its overvaluation relative to the industry. The company's recent stock performance has been volatile, with a year-to-date return of -33.08%, starkly contrasting with the Sensex's positive return of 5.63% over the same period, reinforcing the notion that Supreme Infra. is struggling significantly in the current market environment.