Is ACS Tech overvalued or undervalued?

As of 12 September 2025, the valuation grade for ACS Tech has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 42.85, an EV to EBIT of 30.49, and an EV to EBITDA of 22.71, all of which are significantly higher than industry norms. In comparison, peers such as Vardhman Textile, which has a PE ratio of 14.56, and Trident, with a PE ratio of 33.83, further highlight the relative overvaluation of ACS Tech.
The company's financial metrics, including a ROCE of 6.00% and a ROE of 4.76%, suggest underperformance compared to its peers, reinforcing the conclusion that ACS Tech is overvalued. While the stock has outperformed the Sensex in the short term, with a 1-week return of 10.31% compared to the Sensex's 1.48%, this does not mitigate the overall valuation concerns.