Is Arrowhead Sepera overvalued or undervalued?

As of 24 October 2025, the valuation grade for Arrowhead Sepera has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its high price-to-earnings (PE) ratio of 40.17, an EV to EBITDA ratio of 17.59, and a return on equity (ROE) of only 2.47%. These ratios suggest that investors are paying a premium for the stock relative to its earnings and equity returns.
In comparison to its peers, Arrowhead Sepera's valuation stands out unfavorably. For instance, Rail Vikas has a PE ratio of 57.64, while AIA Engineering has a PE of 28.68, both of which reflect a more favorable valuation in their respective contexts. Additionally, Arrowhead's PEG ratio of 0.00 indicates that it is not expected to grow, further reinforcing the notion of overvaluation. Notably, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -39.04% compared to the Sensex's 7.77%, highlighting the disconnect between its valuation and market performance.