Is Arrowhead Sepera overvalued or undervalued?

As of 27 October 2025, the valuation grade for Arrowhead Sepera has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. The PE ratio stands at 40.17, while the EV to EBITDA ratio is 17.59, and the ROE is notably low at 2.47%.
In comparison to its peers, Arrowhead Sepera's PE ratio is significantly higher than that of Ircon International, which has a PE of 23.95, indicating that Arrowhead may be priced too high relative to its earnings potential. Additionally, Rail Vikas, another peer, has a much higher PE of 57.73, yet it also reflects an expensive valuation. The recent stock performance shows a decline of 39.04% year-to-date, contrasting sharply with the Sensex's gain of 8.50% in the same period, further supporting the view that Arrowhead Sepera is overvalued.