Is Adani Energy Sol overvalued or undervalued?

As of 25 July 2025, the valuation grade for Adani Energy Sol has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 40.98, an EV to EBITDA of 15.64, and a Price to Book Value of 4.45, which are significantly higher than peers such as NTPC with a PE of 13.8 and Tata Power Co. at 31.26.
In comparison to its peers, Adani Energy Sol's valuation metrics suggest it is trading at a premium, particularly when juxtaposed with NTPC and Adani Power, which have lower PE ratios of 13.8 and 17, respectively. The recent stock performance has also been underwhelming, with a 1-year return of -22.07%, contrasting sharply with the Sensex's gain of 1.78% in the same period, reinforcing the notion that the stock is overvalued in the current market context.