Is Bombay Metrics overvalued or undervalued?

As of 14 August 2025, the valuation grade for Bombay Metrics has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 12.76, an EV to EBITDA of 8.11, and a PEG ratio of 0.47, which suggest that while the company has strong earnings potential, its current valuation does not adequately reflect its financial performance relative to peers.
In comparison to its peers, Bombay Metrics has a lower PE ratio than Rail Vikas, which stands at 56.71, and a significantly lower EV to EBITDA than Tube Investments at 30.59. Despite these ratios indicating some level of attractiveness, the overall valuation still leans towards overvaluation given the recent stock performance, which has underperformed the Sensex significantly over various time frames, including a year-to-date decline of 22.84% compared to the Sensex's gain of 4.17%.