Is Vahanna Tech Edge Acquisition I Corp. overvalued or undervalued?

As of 12 February 2024, the valuation grade for Vahanna Tech Edge Acquisition I Corp. has moved from does not qualify to risky. The company is currently considered overvalued given its negative financial metrics and ratios. Key ratios include a Price to Book Value of -2.58, an EV to EBIT of -0.93, and an EV to EBITDA of -0.95, all indicating significant financial distress.
In comparison to its peers, Vahanna's valuation appears unfavorable. For instance, Power & Digital Infrastructure Acquisition II Corp. has a P/E ratio of -24.29, while BYTE Acquisition Corp. shows a P/E of -34.75, both of which are in a similar risky category but reflect even worse valuations. Additionally, the company's stock performance has been poor, with a year-to-date return of -53.21%, significantly underperforming the S&P 500's 2.44% return. This further reinforces the conclusion that Vahanna Tech Edge Acquisition I Corp. is overvalued.