Is CLN Energy overvalued or undervalued?

As of 31 October 2025, CLN Energy's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 45.58, an EV to EBITDA ratio of 24.95, and a ROCE of 17.21%. In comparison to peers, Samvardhana Motherson has a lower PE ratio of 32.55 and an EV to EBITDA of 11.93, while Bosch, rated as fair, has a higher PE ratio of 49.53 and an EV to EBITDA of 44.73.
The valuation metrics suggest that CLN Energy is positioned favorably within its industry, particularly when considering its PEG ratio of 0.00, which indicates potential for growth relative to its price. Additionally, the company's recent stock performance has outpaced the Sensex over the past week, reinforcing the notion of its undervaluation in the current market context.