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 appears overvalued at this stage, with a PE ratio of 66.18, an EV to EBITDA of 21.70, and a Price to Book Value of 3.43. These ratios suggest that the stock is priced at a premium compared to its earnings and book value.
In comparison to its peers, Bajaj Electrical's valuation stands out; for instance, V-Guard Industries, which is rated attractive, has a significantly lower PE ratio of 54.33, while Metro Brands is deemed very expensive with a PE of 86.64. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -33.77% compared to the Sensex's 7.42%, further supporting the notion that Bajaj Electrical may be overvalued at its current price of 513.25.