Is Arrowhead Sepera overvalued or undervalued?

As of 15 July 2025, Arrowhead Sepera has moved from an attractive to a fair valuation grade, indicating a shift in its perceived value. The company is currently fairly valued, with a price-to-earnings (PE) ratio of 13.41, a price-to-book value of 0.83, and an EV to EBITDA ratio of 10.99. These ratios suggest that while the company is not undervalued, it is also not overvalued compared to its peers.
In comparison to its industry peers, Arrowhead Sepera's valuation metrics stand out. For instance, Ircon International, which is also rated fair, has a significantly higher PE ratio of 24.84, while Engineers India, rated very expensive, has a PE ratio of 23.94. Notably, Arrowhead's PEG ratio is at 0.00, which is quite low compared to other peers, indicating potential growth concerns. The company's recent stock performance has been disappointing, with a year-to-date return of -50.36%, contrasting sharply with the Sensex's positive return of 5.67%, further emphasizing the challenges Arrowhead faces in the current market environment.