Is Aarvi Encon overvalued or undervalued?

As of 19 February 2025, the valuation grade for Aarvi Encon has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 16.61, an EV to EBITDA ratio of 13.36, and a Price to Book Value of 1.33. These metrics suggest that the stock is trading at a reasonable valuation compared to its earnings and book value.
In comparison to peers, Aarvi Encon's PE ratio aligns closely with the industry average, while its EV to EBITDA ratio is also competitive. Notably, the PEG ratio stands at 0.00, which highlights a significant growth potential relative to its price. Despite recent underperformance against the Sensex, particularly in the year-to-date and one-year returns, the long-term performance over five years shows a remarkable gain of 402.18%, reinforcing the attractiveness of the current valuation.