Is Swati Projects overvalued or undervalued?

As of 23 October 2025, the valuation grade for Swati Projects has moved from expensive to risky, indicating a significant shift in the company's perceived value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of -116.05, an EV to EBITDA of -35.89, and a Price to Book Value of 2.86, all of which suggest that the company is struggling to generate positive earnings and is trading at a high valuation relative to its book value.
In comparison to its peers, Swati Projects stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 39.07, while Life Insurance boasts a PE of 11.68, both indicating a more favorable valuation relative to their earnings. Additionally, Swati Projects' negative PEG ratio of 0.00 further emphasizes its lack of growth potential compared to peers like Bajaj Finserv, which has a PEG of 2.59. The company's recent stock performance has been poor, with a year-to-date return of -43.77%, contrasting sharply with the Sensex's positive return of 8.21%, reinforcing the notion that Swati Projects is overvalued in the current market environment.