Is Vikas Lifecare overvalued or undervalued?

As of 22 July 2024, the valuation grade for Vikas Lifecare has moved from very expensive to risky, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios reveal a PE ratio of -46.72, an EV to EBITDA of -25.23, and a Price to Book Value of 0.89, which highlight the underlying financial challenges the company faces.
In comparison to its peers, Vikas Lifecare's valuation metrics are concerning, particularly when contrasted with industry standards. For instance, its PE ratio is significantly negative, while the EV to EBITDA ratio also reflects a troubling trend. Notably, the company has underperformed against the Sensex, with a year-to-date return of -38.77% compared to the Sensex's positive 5.56%. This performance further reinforces the notion that Vikas Lifecare is currently overvalued in the market.