Is Zee Media overvalued or undervalued?

As of 31 May 2023, the valuation grade for Zee Media has moved from very attractive to risky, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued, given its troubling financial ratios, including a PE ratio of -7.45, an EV to EBITDA of -55.57, and a ROE of -52.73%. These figures highlight severe profitability issues and an inability to generate positive earnings.
In comparison to its peers, Zee Media's valuation appears unfavorable. For instance, Sun TV Network, categorized as expensive, has a PE ratio of 13.91, while Zee Entertainment, rated very attractive, boasts a PE of 15.91. Other peers like Network18 Media and NDTV are also classified as risky, with significant losses reflected in their metrics. Additionally, Zee Media's stock has underperformed relative to the Sensex, particularly in the year-to-date period, where it has declined by 23.56% compared to the Sensex's gain of 5.59%. This further reinforces the notion that Zee Media is currently overvalued.