Is Alpex Solar overvalued or undervalued?

As of 7 November 2025, Alpex Solar's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued. Key ratios include a PE ratio of 37.81, an EV to EBITDA of 23.32, and a ROCE of only 2.57%, which raises concerns about its profitability relative to its valuation.
In comparison to its peers, Alpex Solar's PE ratio is notably higher than that of Apar Industries, which has a PE of 35.42 and is classified as fairly valued. Other peers like Siemens Energy and ABB also show higher valuations, with PE ratios of 117.2 and 60.16, respectively. Despite recent strong stock performance, with a year-to-date return of 50.92% compared to the Sensex's 7.81%, the underlying valuation metrics suggest that Alpex Solar is not justified at its current price level.