Is BF Utilities overvalued or undervalued?

As of 12 November 2025, the valuation grade for BF Utilities has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued based on its financial ratios, which include a PE ratio of 17.70, an EV to EBITDA ratio of 5.54, and an ROE of 112.57%. These figures suggest that the stock is priced higher relative to its earnings and cash flow generation capabilities.
In comparison to its peers, BF Utilities' PE ratio is notably higher than NTPC's attractive PE of 13.35 and significantly lower than Adani Power's very expensive PE of 24.35. Additionally, while NTPC and Tata Power Co. are classified as attractive, BF Utilities stands out as overvalued. The company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -28.26% compared to the Sensex's positive return of 8.10%, further reinforcing the notion that the stock may not be a favorable investment at its current price.