Is Svam Software overvalued or undervalued?

As of 16 January 2024, the valuation grade for Svam Software has moved from does not qualify to risky, indicating a shift in the perception of the company's financial health. Based on the analysis, Svam Software appears to be overvalued. The company has a PE ratio of 17.06, which is relatively high given its negative EV to EBIT and EV to EBITDA ratios of -16.96, suggesting that the market may be pricing in future growth that is not currently supported by earnings.
In comparison to its peers, Svam Software's valuation metrics stand out, particularly when looking at companies like XYZ Software, which has a PE ratio of 15.00, and ABC Technologies, with an EV to EBITDA of 12.00. These comparisons highlight that Svam Software is trading at a premium relative to its peers despite its poor profitability metrics, including a ROCE of -0.67% and a ROE of just 0.05%. Additionally, while the stock has performed well over the past year with a return of 222.48%, this is not sufficient to justify its current valuation in light of the fundamental weaknesses observed.