Is Tracxn Technolo. overvalued or undervalued?

As of 14 May 2023, the valuation grade for Tracxn Technologies has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of -63.74, an EV to EBIT ratio of 515.49, and a Price to Book Value of 9.25. These ratios suggest that the company's valuation is not supported by its financial performance, especially given the negative ROE of -14.51%.
In comparison to its peers, Tracxn Technologies stands out unfavorably. For instance, Tata Consultancy Services has a PE ratio of 25.23 and an EV to EBITDA of 17.63, while Infosys shows a PE of 24.32 and an EV to EBITDA of 15.83, both indicating much healthier valuations. The stark contrast in these ratios highlights the overvaluation of Tracxn Technologies within the commercial services and supplies industry. Additionally, the company's stock has underperformed compared to the Sensex, with a year-to-date return of -25.03% against the Sensex's 5.56%, reinforcing the notion of its overvaluation.