Is Waterbase overvalued or undervalued?

As of 13 May 2022, the valuation grade for Waterbase has moved from very expensive to risky, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key financial ratios reveal a PE ratio of -12.69, an EV to EBITDA of -14.64, and a Price to Book Value of 1.49, which highlight the challenges Waterbase faces in generating profits and managing its capital effectively.
In comparison to its peers, Waterbase's valuation metrics starkly contrast with those of Avanti Feeds, which boasts a PE ratio of 19.15 and an EV to EBITDA of 12.96, and Mukka Proteins, with a PE of 20.24 and an EV to EBITDA of 14.27. These comparisons underscore Waterbase's relative underperformance in the FMCG sector. Additionally, the company's stock has significantly lagged behind the Sensex, with a year-to-date return of -25.33% compared to the Sensex's 5.59%, reinforcing the notion that Waterbase is currently overvalued in the market.