Is Teamo Production overvalued or undervalued?

As of 11 July 2025, Teamo Production's valuation grade has moved from fair to expensive, indicating a shift in its perceived market value. The company is currently overvalued, with a PE ratio of 27.94, an EV to EBIT of 66.55, and an EV to EBITDA of 65.67. In comparison to its peers, Altius Telecom has a significantly higher PE ratio of 53.33, while Sagility India, which is rated fair, has a PE of 38.88, underscoring Teamo's relative overvaluation.
Despite a recent surge in stock price, with a 1-week return of 19.74% compared to a -1.12% return for the Sensex, the long-term performance shows a decline, with a year-to-date drop of 64.86%. This trend, alongside a low ROCE of 1.10% and ROE of 2.63%, suggests that the company's fundamentals do not support its current valuation. Overall, Teamo Production appears to be overvalued in the current market environment.