Is Adani Power overvalued or undervalued?

As of 25 April 2025, the valuation grade for Adani Power has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 16.55, an EV to EBITDA of 11.57, and a ROE of 22.96%.
In comparison to its peers, Adani Power's PE ratio stands at 16.55, while it is notable that the PEG ratio is at 0.00, suggesting potential growth concerns. The company has outperformed the Sensex in recent periods, with a 1-month return of 9.74% compared to the Sensex's 3.83%, but its 1-year return of -26.56% highlights significant underperformance over a longer horizon.