Is Amba Enterprises overvalued or undervalued?

As of 30 October 2025, the valuation grade for Amba Enterprises has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 28.33, a Price to Book Value of 4.89, and an EV to EBITDA of 20.61. These ratios suggest that the stock is priced significantly higher than its earnings and book value, raising concerns about its current valuation.
In comparison to its peers, Amba Enterprises' PE ratio is notably higher than that of Ircon International, which has a PE of 24.2, and AIA Engineering at 28.07. Such comparisons highlight that Amba Enterprises may not justify its premium valuation relative to its industry peers. Additionally, while the company has shown strong historical returns, including a remarkable 1461.90% over the past five years, its year-to-date performance of -20.18% against the Sensex's 8.02% indicates a potential disconnect between market sentiment and the underlying valuation.