Is Affordable Robo. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Affordable Robo. has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company is currently considered overvalued, primarily due to its high PE ratio of 173.13, which significantly exceeds the industry average. Additionally, the EV to EBITDA ratio stands at 63.05, further highlighting the premium at which the stock is trading compared to its earnings potential.
In comparison to peers, Affordable Robo. has a markedly higher PE ratio than Rail Vikas, which is considered expensive with a PE of 55.79, and Tube Investments, which is categorized as very expensive with a PE of 91.93. The company's ROCE of 0.52% and ROE of 0.15% also suggest inefficiencies in generating returns relative to its equity and capital employed. While the stock has underperformed against the Sensex over the past year, with a return of -66.43% compared to the Sensex's 4.62%, this further reinforces the notion that Affordable Robo. is overvalued in its current market position.