Is Systematix Corp. overvalued or undervalued?

Jun 09 2025 03:23 PM IST
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As of June 1, 2023, Systematix Corp. is considered very expensive and overvalued with a PE ratio of 36.31, an EV to EBITDA ratio of 41.71, and a Price to Book Value of 5.54, significantly higher than its peers, despite a strong 1-year return of 42.38%.
As of 1 June 2023, the valuation grade for Systematix Corp. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a PE ratio of 36.31, an EV to EBITDA ratio of 41.71, and a Price to Book Value of 5.54. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.

In comparison to its peers, Systematix Corp.'s valuation metrics are notably higher than those of Life Insurance, which has a PE ratio of 12.54 and an EV to EBITDA of 9.89, and I R F C, which has a PE ratio of 29.42 and an EV to EBITDA of 22.12. This stark contrast further reinforces the conclusion that Systematix Corp. is overvalued. Despite a strong recent performance with a 1-year return of 42.38% compared to the Sensex's 7.60%, the company's elevated valuation ratios suggest that investors may be overestimating its future growth potential.
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