Is VXL Instruments overvalued or undervalued?

As of 25 April 2023, VXL Instruments has moved from a valuation grade of "does not qualify" to "risky." The company is currently considered overvalued, given its negative PE ratio of -3.63, an EV to EBITDA of -6.73, and a ROE of -187.00%. These figures indicate significant financial distress, especially when compared to peers such as Redington, which has a PE ratio of 20, and Tejas Networks with a PE ratio of 28.73, both of which are in a much healthier financial position.
The peer comparison highlights VXL's struggles in the electronics and appliances industry, where it stands out with negative earnings metrics and a high price to book value of 6.80. While the stock has shown a positive return of 16.28% over the past year, it has underperformed against the Sensex, which returned 7.65% in the same period. Overall, the financial indicators and peer comparisons suggest that VXL Instruments is overvalued in its current state.