Is Adani Energy Sol overvalued or undervalued?

As of 19 September 2025, the valuation grade for Adani Energy Sol has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios include a PE Ratio of 43.99, an EV to EBITDA of 16.49, and a Price to Book Value of 4.78, all of which are considerably higher than industry norms.
In comparison to peers, NTPC, which is rated attractive, has a PE of 13.71 and an EV to EBITDA of 10.77, highlighting a stark contrast in valuation metrics. Similarly, Tata Power Co. has a PE of 30.63 and an EV to EBITDA of 12.34, further emphasizing the overvaluation of Adani Energy Sol. Despite recent stock performance showing a 5.89% return over the past week compared to a 0.88% return for the Sensex, the overall valuation suggests that investors should approach this stock with caution given its current pricing relative to its earnings potential.