Is Bajaj Electrical overvalued or undervalued?

As of 31 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 based on its financial metrics, with a PE ratio of 66.18, an EV to EBITDA ratio of 21.70, and a Price to Book Value of 3.43. These ratios suggest that while the company is not undervalued, it also does not present a compelling buying opportunity at this time.
In comparison to its peers, Bajaj Electrical's PE ratio is higher than V-Guard Industries, which has a PE of 54.33 and is considered attractive, but lower than Metro Brands, which is deemed very expensive at a PE of 86.64. The recent stock performance has been disappointing, with a year-to-date return of -33.77%, significantly underperforming the Sensex, which has gained 7.42% in the same period. This underperformance further supports the view that Bajaj Electrical is fairly valued rather than undervalued.