Is ACS Tech overvalued or undervalued?

Sep 15 2025 08:05 AM IST
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As of September 12, 2025, ACS Tech is considered overvalued with a PE ratio of 42.85 and unfavorable valuation metrics compared to peers, despite recent strong performance against the Sensex.
As of 12 September 2025, the valuation grade for ACS Tech has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued, with a PE ratio of 42.85, an EV to EBIT ratio of 30.49, and an EV to EBITDA ratio of 22.71. These figures suggest that ACS Tech's stock price is not justified by its earnings and cash flow relative to its peers.

In comparison to its peers, ACS Tech's valuation metrics stand out unfavorably; for instance, K P R Mill Ltd has a PE ratio of 42, while Trident shows a more reasonable EV to EBITDA ratio of 16.08. Additionally, ACS Tech's ROCE of 6.00% and ROE of 4.76% further highlight its underperformance relative to industry standards. Notably, ACS Tech has outperformed the Sensex over the past week and month, with returns of 10.31% and 36.33%, respectively, which may have contributed to its inflated valuation.
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