Is Arrowhead Sepera overvalued or undervalued?

As of 23 September 2025, Arrowhead Sepera's valuation grade has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 15.16, an EV to EBITDA of 16.40, and a ROE of only 2.47%. These figures suggest that the stock is priced higher than its fundamental performance would justify.
In comparison to its peers, Arrowhead Sepera's valuation appears less favorable. For instance, Rail Vikas has a significantly higher PE ratio of 62.36, while Ircon International, which is rated fair, has a PE of 25.25. The overall market sentiment is not in favor of Arrowhead Sepera, as evidenced by its year-to-date return of -43.89%, contrasting sharply with the Sensex's gain of 5.07%. This further reinforces the conclusion that Arrowhead Sepera is overvalued in the current market environment.