Is Accel overvalued or undervalued?

As of 12 May 2025, Accel's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company appears to be overvalued at this stage, given its high PE ratio of 49.21, which significantly exceeds the industry average, as seen in peers like Redington with a PE of 20 and Tejas Networks at 28.73. Additionally, Accel's EV to EBITDA ratio stands at 11.42, which is higher than many of its peers, further suggesting that the stock may be priced too high relative to its earnings potential.
In comparison to its peers, Accel's PEG ratio is notably low at 0.00, indicating no growth expectations factored into its valuation, while its dividend yield of 1.73% offers limited compensation for the risk taken by investors. The company's recent performance has also lagged behind the Sensex, with a year-to-date return of -21.40% compared to the Sensex's 5.61%, reinforcing the notion that Accel may not be a compelling investment at its current price of 17.30.