Is Arihant Academy overvalued or undervalued?

As of 18 November 2025, the valuation grade for Arihant Academy has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 48.86, an EV to EBITDA ratio of 40.44, and a Price to Book Value of 11.96. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Arihant Academy's PE ratio significantly exceeds that of Veranda Learning, which is at 37.20, and it is also much higher than the attractive valuation of Zee Learn at 13.72. The PEG ratio of 0.26 indicates potential growth, but the overall high valuation metrics suggest that the stock may not provide adequate returns relative to its price. Notably, while the stock has outperformed the Sensex with a 1Y return of 130.07% compared to the Sensex's 10.47%, the current valuation still points towards overvaluation in the context of its peers.