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 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 has some attractive growth potential, its current valuation does not reflect that adequately.
In comparison to peers, Bombay Metrics' PE ratio of 14.54 is significantly lower than that of Rail Vikas, which stands at 63.64, and Tube Investments, which is at 99.58. This indicates that while Bombay Metrics is classified as expensive, it is relatively more attractive than some of its peers in the industrial manufacturing sector. Notably, the company's stock has underperformed the Sensex, with a year-to-date return of -12.24% compared to the Sensex's 7.11%, reinforcing the view that the stock may be overvalued at its current price of 50.90.