Is Black Box overvalued or undervalued?

As of 12 May 2025, the valuation grade for Black Box has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE Ratio of 35.40, an EV to EBITDA of 18.93, and a PEG Ratio of 0.67. These figures suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Black Box's PE Ratio is significantly higher than Indus Towers, which stands at 10.58, and Affle 3i, which is at 66.35, further highlighting its expensive valuation. Additionally, while Black Box has shown strong returns over the past year, outperforming the Sensex with a 122.94% return compared to 7.61% for the index, the current valuation metrics suggest that investors should exercise caution as the stock appears to be overvalued.