Is Bombay Metrics overvalued or undervalued?

As of 19 September 2025, the valuation grade for Bombay Metrics has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered 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 suggests that while the company is generating profits, its valuation remains high compared to its earnings growth potential.
In comparison to its peers, Bombay Metrics' PE Ratio is significantly lower than that of Tube Investments, which stands at 99.58, and AIA Engineering at 26.26. However, it is higher than Ircon International's PE of 26.09, which is rated as fair. The recent stock performance shows that Bombay Metrics has underperformed the Sensex over the past year, with a return of -30.35% compared to the Sensex's -0.35%, reinforcing the notion that the stock may be overvalued in the current market context.