Is Alpex Solar overvalued or undervalued?

As of 12 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 based on its high PE ratio of 37.68, a price-to-book value of 6.60, and an EV to EBITDA ratio of 25.39. In comparison to its peers, Alpex Solar's valuation metrics are notably higher; for instance, Siemens Energy Industries has a PE ratio of 119.16 and ABB at 59.08, both categorized as very expensive, while Apar Industries is relatively more attractive with a PE of 38.39.
Given these ratios and the overall valuation context, Alpex Solar appears to be overvalued. The company's recent performance has outpaced the Sensex, with a year-to-date return of 50.42% compared to the Sensex's 9.44%, which may reflect market optimism but does not mitigate the high valuation concerns.