Is Arrowhead Sepera overvalued or undervalued?

As of 28 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 deemed overvalued based on its high PE ratio of 40.17, an EV to EBIT of 18.08, and a PEG ratio of 0.00, which reflects a lack of growth expectations despite its high valuation metrics.
In comparison to its peers, Arrowhead Sepera's valuation stands out, particularly against Rail Vikas, which has a PE ratio of 57.48, and Ircon International, which is considered attractive with a PE of 23.73. The stark contrast in valuations suggests that Arrowhead Sepera may not justify its current price given the broader industry context. Additionally, the company's stock has underperformed significantly, with a year-to-date return of -39.04% compared to the Sensex's gain of 8.30%, reinforcing the notion that it is overvalued in the current market environment.