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

As of 13 November 2023, the valuation grade for Vahanna Tech Edge Acquisition I Corp. has moved from does not qualify to risky, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued, as evidenced by its negative Price to Book Value of -2.58 and negative EV to EBIT and EV to EBITDA ratios of -0.93 and -0.95, respectively. Additionally, the company's return on equity (ROE) is negative, reflecting poor financial performance.
In comparison to its peers, Vahanna Tech Edge Acquisition I Corp. has a P/E ratio of -2.5566, while BYTE Acquisition Corp. has a much higher P/E of -21.9285, suggesting that Vahanna is not the worst performer but still faces significant challenges. The stock has underperformed against the S&P 500, with a year-to-date return of -55.67% compared to the index's 12.22%, reinforcing the notion that the stock is currently overvalued.