Is Arrowhead Sepera overvalued or undervalued?

As of 29 August 2025, Arrowhead Sepera's valuation grade has moved from expensive to fair, indicating a potential shift in market perception. The company is currently fairly valued, with a PE ratio of 15.16, an EV to EBITDA ratio of 16.40, and a Price to Book Value of 0.91. These ratios suggest that the company is reasonably priced relative to its earnings and book value.
In comparison to its peers, Arrowhead Sepera's valuation metrics stand out, particularly against Rail Vikas, which is considered expensive with a PE ratio of 52.97, and Tube Investments, which has a significantly higher PE ratio of 87.78. Despite the recent underperformance, with a year-to-date return of -43.89% compared to a 2.14% gain in the Sensex, the current valuation suggests that Arrowhead Sepera may be a more attractive investment relative to its peers in the industrial manufacturing sector.