Is Alfavision Overs overvalued or undervalued?

As of 17 November 2025, the valuation grade for Alfavision Overs has moved from very expensive to risky, indicating a shift in perception regarding its market position. The company is currently considered overvalued, primarily due to its high PE ratio of 58.78 and an EV to EBITDA ratio of 153.80, which are significantly elevated compared to industry norms. In contrast, peer comparisons reveal that companies like PTC India, which is rated very attractive, has a PE ratio of just 7.56 and an EV to EBITDA of 2.45, highlighting the disparity in valuation metrics.
Moreover, Alfavision's return on equity (ROE) stands at a mere 0.74%, while its return on capital employed (ROCE) is negative at -0.02%, further emphasizing the company's struggles in generating returns relative to its valuation. The stock has underperformed the Sensex significantly, with a year-to-date decline of 58.42% compared to the Sensex's gain of 8.72%. Given these factors, Alfavision Overs appears to be overvalued in the current market context.