Is Bombay Metrics overvalued or undervalued?

As of 18 September 2025, the valuation grade for Bombay Metrics has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios include a PE Ratio of 14.54, an EV to EBITDA of 10.42, and a PEG Ratio of 0.53, which suggest that while the company has a reasonable earnings multiple, its growth prospects may not justify the high valuation.
In comparison with peers, Bombay Metrics' PE Ratio of 14.54 is notably lower than that of Rail Vikas, which stands at 63.33, yet it is still categorized as very expensive. Other peers like Tube Investments and AIA Engineering are also classified as very expensive, with PE Ratios of 100.83 and 26.83, respectively. The company's stock has underperformed significantly over the past year, with a return of -33.7% compared to a mere 0.18% increase in the Sensex, reinforcing the notion that the current valuation may not be sustainable.