Is Arrowhead Sepera overvalued or undervalued?

As of 3 July 2025, Arrowhead Sepera's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 13.38, an EV to EBITDA of 10.96, and a Price to Book Value of 0.83. These ratios suggest that Arrowhead Sepera is trading at a discount compared to its intrinsic value.
In comparison to its peers, Arrowhead Sepera stands out with its attractive valuation, especially when contrasted with companies like Rail Vikas, which has a PE ratio of 63.56, and Tube Investments, with a PE ratio of 84.7. The significant difference in valuation metrics highlights Arrowhead Sepera's potential for growth and value appreciation. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -50.46% compared to the Sensex's 6.53%, further emphasizing its undervaluation in the current market environment.