Is Arrowhead Sepera overvalued or undervalued?

As of 23 October 2025, the valuation grade for Arrowhead Sepera has moved from very expensive to expensive, indicating a slight adjustment in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 40.17, an EV to EBIT of 18.08, and a ROCE of 5.50%.
In comparison to peers, Arrowhead's PE ratio is significantly higher than that of Ircon International, which stands at 23.89, and AIA Engineering at 28.59. This suggests that Arrowhead is trading at a premium relative to its peers, despite its lower ROE of 2.47%. The recent stock performance shows a year-to-date decline of 39.04%, contrasting sharply with the Sensex's gain of 8.21%, reinforcing the notion that Arrowhead Sepera is overvalued in the current market environment.