Is Bharat Bijlee overvalued or undervalued?

As of 17 October 2025, Bharat Bijlee's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE Ratio of 23.95, an EV to EBITDA of 12.10, and a Price to Book Value of 0.16, which suggests that the stock is trading at a discount relative to its book value.
In comparison to its peers, Bharat Bijlee's valuation stands out; for instance, Larsen & Toubro has a PE Ratio of 34.06, while CG Power & Ind is deemed very expensive with a PE of 119.04. This positions Bharat Bijlee favorably within its industry, especially given its lower PEG Ratio of 1.11 compared to the higher ratios of its peers. Despite recent underperformance against the Sensex, with a year-to-date return of -16.76% versus the Sensex's 7.44%, the long-term outlook remains strong, evidenced by a remarkable 3-year return of 222.53%.