Is Bombay Metrics overvalued or undervalued?

As of 13 October 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 12.90, an EV to EBITDA of 9.42, and a PEG ratio of 0.47, which indicate that while the company has a relatively low PE ratio compared to its peers, the overall valuation remains high.
In comparison to its peers, Bombay Metrics has a PE ratio significantly lower than that of Rail Vikas at 59.31 and Tube Investments at 92.71, both categorized as very expensive. However, the company's current valuation still does not justify its price given the recent performance, with a year-to-date return of -21.98%, contrasting sharply with the Sensex's gain of 6.69% during the same period. This reinforces the view that Bombay Metrics is overvalued in the current market environment.