Is Arrowhead Sepera overvalued or undervalued?

As of 18 September 2025, Arrowhead Sepera's valuation grade has moved from fair to expensive, indicating a shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a Price to Earnings (PE) ratio of 15.22, an EV to EBITDA ratio of 16.46, and a Return on Capital Employed (ROCE) of 5.50%.
In comparison to its peers, Arrowhead Sepera's PE ratio is significantly lower than that of Rail Vikas, which stands at 63.33, and Tube Investments, which is at 100.83. This suggests that while Arrowhead Sepera may appear less expensive relative to its peers, the overall valuation still reflects an expensive outlook. Additionally, the company's stock has underperformed compared to the Sensex, with a year-to-date return of -43.64% against the Sensex's 6.24%, reinforcing the notion of overvaluation.