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 assessed as overvalued. Key ratios include a PE ratio of 37.81, an EV to EBIT of 25.03, and a Price to Book Value of 0.66, which suggest that the stock is trading at a premium compared to its earnings and book value.
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 considered fairly valued. Other peers like Siemens Energy and ABB are also classified as very expensive, 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 overall valuation metrics indicate that Alpex Solar is not a compelling investment at its current price level.