Is Tembo Global overvalued or undervalued?

As of 26 May 2025, the valuation grade for Tembo Global Industries Ltd. has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 10.25, an EV to EBITDA of 9.83, and a PEG ratio of 0.04, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Tembo Global's PE ratio is similar to that of its closest competitor, which also has a PE of approximately 10.25, while the industry average for EV to EBITDA is higher, indicating that Tembo Global is positioned favorably. Notably, the company's ROE stands at 24.12%, which is significantly above the industry average, further reinforcing its attractiveness. While the stock has underperformed against the Sensex in the short term, its long-term returns over the past year and five years, at 100.17% and 609.23% respectively, highlight its potential for growth.