Is Arrowhead Sepera overvalued or undervalued?

As of 18 July 2025, the valuation grade for Arrowhead Sepera has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 14.03, an EV to EBITDA of 11.56, and a Price to Book Value of 0.87, which suggest a balanced valuation relative to its earnings and asset base.
In comparison to its peers, Arrowhead Sepera's valuation appears more reasonable when contrasted with Rail Vikas, which is considered expensive with a PE ratio of 61.18, and Ircon International, which is also fairly valued with a PE ratio of 24.17. Notably, Arrowhead Sepera has underperformed the Sensex significantly over the past year, with a return of -55.36% compared to the Sensex's modest gain of 0.51%. This underperformance, coupled with its current fair valuation, indicates that while the stock may not be undervalued, it is not positioned for immediate growth relative to its peers.