Is Arrowhead Sepera overvalued or undervalued?

As of 4 November 2025, the valuation grade for Arrowhead Sepera has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued, with a PE ratio of 40.17, an EV to EBIT ratio of 18.08, and a ROE of 2.47%. These ratios suggest that investors are paying a premium for the stock relative to its earnings and book value.
In comparison to its peers, Arrowhead Sepera's valuation metrics stand out. For instance, Rail Vikas has a PE ratio of 56.98, while Tube Investments shows a PE of 89.09, both of which are higher than Arrowhead's. However, the overall high valuation of Arrowhead, combined with its low ROE and negative year-to-date return of -39.04% compared to the Sensex's 6.81%, reinforces the conclusion that the stock is overvalued.