Is Bajaj Electrical overvalued or undervalued?

As of 14 October 2025, Bajaj Electrical's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 68.42, an EV to EBITDA ratio of 24.08, and a Price to Book Value of 3.67. Compared to its peers, Bajaj Electrical's valuation appears high; for instance, V-Guard Industries, which is rated attractive, has a PE ratio of 53.1, while Bata India also rated attractive, has a PE ratio of 65.6.
In terms of performance, Bajaj Electrical has struggled recently, with a year-to-date return of -29.21%, contrasting sharply with the Sensex's gain of 4.98% over the same period. This underperformance, along with its elevated valuation ratios, suggests that while the stock is currently fairly valued, it may not offer significant upside potential compared to its peers in the electronics and appliances sector.