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 supporting this conclusion 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 substantial discount relative to its book value.
In comparison to its peers, Bharat Bijlee's PE ratio is notably lower than that of Larsen & Toubro, which stands at 34.06, and significantly more favorable than CG Power & Ind, which is deemed very expensive with a PE of 119.04. Additionally, Bharat Bijlee's PEG ratio of 1.11 indicates a reasonable growth expectation compared to its price. Despite recent underperformance against the Sensex over the past year, with a decline of 36.46% compared to the Sensex's 3.64% gain, the long-term performance shows a remarkable increase of 928.48% over the past decade, reinforcing the potential for future growth.