Is Voler Car overvalued or undervalued?

As of 14 August 2025, the valuation grade for Voler Car has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 47.30, an EV to EBITDA of 43.33, and an EV to Sales ratio of 4.87. These metrics suggest that the stock is trading at a premium compared to its earnings and sales, which raises concerns about its sustainability at these levels.
In comparison to peers, Voler Car's PE ratio is higher than that of I R C T C, which stands at 44.51, and significantly above Thomas Cook (I) at 29.17, indicating that investors are paying more for each unit of earnings in Voler Car. Additionally, the company has shown impressive ROCE and ROE figures of 142.90% and 142.19%, respectively, but these returns do not justify the elevated valuation multiples. The recent stock performance has outpaced the Sensex, with a 1-month return of 106.69% compared to a -1.80% return for the index, further complicating the valuation narrative.