Is Cyient DLM overvalued or undervalued?

As of 17 November 2025, the valuation grade for Cyient DLM has moved from fair to expensive, indicating a shift towards overvaluation. The company's current PE ratio stands at 43.50, while its EV to EBITDA ratio is 24.35 and the PEG ratio is 3.74. These ratios suggest that Cyient DLM is trading at a premium compared to its earnings and growth potential.
In comparison with peers, Cyient DLM's valuation appears high, especially when contrasted with Genus Power, which has a PE ratio of 22.96 and an EV to EBITDA of 15.19. Other peers like Kaynes Tech and Honeywell Auto are categorized as very expensive, but their ratios (PE of 110.51 and 60.99, respectively) further emphasize that Cyient DLM, despite being expensive, is relatively more attractive than these outliers. Overall, Cyient DLM is deemed overvalued, particularly given its significant underperformance against the Sensex, with a year-to-date return of -33.01% compared to the Sensex's 8.72%.