Is Unistar Multim. overvalued or undervalued?

As of 4 December 2024, the valuation grade for Unistar Multim. has moved from very attractive to risky. This shift indicates that the company is currently overvalued. Key ratios reflect significant concerns, including a PE ratio of -1.89, an EV to EBITDA of -1.98, and a ROCE of -41.56%. These figures suggest that the company is struggling to generate positive returns and is not performing well relative to its peers.
In comparison to its industry, Unistar Multim. stands out negatively against companies like PVR INOX Ltd., which, despite being loss-making, has a PE ratio of 11.19, and Prime Focus Ltd., which boasts an impressive PE ratio of 1147.67. The stark contrast in valuation metrics highlights the challenges Unistar Multim. faces. Additionally, the company's stock has underperformed significantly, with a 1-year return of -52.88% compared to the Sensex's 7.57%, reinforcing the notion that it is overvalued in the current market environment.