Is Arrow Greentech overvalued or undervalued?

As of 10 July 2025, Arrow Greentech's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 15.46, an EV to EBITDA of 10.02, and a PEG ratio of 0.14, which suggests that while the earnings growth potential is high, the current price does not reflect this adequately.
In comparison to its peers, Arrow Greentech's PE ratio is notably lower than that of Supreme Industries at 54.99 and Astral at 76.35, both of which are also categorized as very expensive. Despite its strong ROCE of 82.78% and ROE of 33.52%, the high valuation relative to its peers raises concerns about sustainability. Additionally, while Arrow Greentech has outperformed the Sensex over the past year with a return of 12.85% compared to the Sensex's 4.09%, the overall valuation suggests caution for potential investors.