Is Bangalore Fort overvalued or undervalued?

As of 12 November 2025, the valuation grade for Bangalore Fort has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current financial metrics, with a PE ratio of 53.92, an EV to EBITDA ratio of 34.43, and a Price to Book Value of 3.75. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Bangalore Fort's PE ratio of 53.92 is significantly higher than Altius Telecom's 27.64, which is considered very attractive, and Sagility's 30.27, which is rated fair. Additionally, the company's return on equity (ROE) stands at 6.96%, which is relatively low compared to the expectations set by its valuation. While Bangalore Fort has outperformed the Sensex over various time frames, including a year-to-date return of 27.21% versus the Sensex's 8.10%, the current valuation metrics suggest that investors may be paying too much for future growth potential.