Is Vikram Thermo overvalued or undervalued?

As of 5 June 2024, the valuation grade for Vikram Thermo has moved from expensive to very expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 15.77, an EV to EBITDA of 12.16, and a PEG ratio of 0.52, which suggests that despite the high valuation, growth expectations may not justify the price.
In comparison to peers, Vikram Thermo's PE ratio is significantly lower than Solar Industries, which has a PE of 123.77, but still higher than Godrej Industries, which is valued attractively at 46.63. The company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -3.69% compared to the Sensex's 5.63%, further reinforcing the notion of overvaluation in the current market context.