Is Bombay Metrics overvalued or undervalued?

As of 14 October 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 assessed as 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 earnings growth potential appears favorable, the overall valuation remains high relative to its earnings and cash flow metrics.
In comparison with peers, Bombay Metrics' PE ratio of 14.54 is notably lower than Rail Vikas, which stands at 58.07, yet it is still considered very expensive in the context of the industry. Other peers like Tube Investments and AIA Engineering also reflect very expensive valuations with PE ratios of 92.1 and 27.47, respectively. Despite a recent uptick in stock price, the company's year-to-date return of -12.07% starkly contrasts with the Sensex's positive return of 6.35%, reinforcing the notion that Bombay Metrics is currently overvalued in the market.