Is Danish Power overvalued or undervalued?

As of 26 September 2025, the valuation grade for Danish Power has moved from very expensive to expensive, indicating a slight improvement in perceived value. However, the company remains overvalued based on its current financial metrics. The price-to-earnings (PE) ratio stands at 28.82, the price-to-book value is 5.24, and the EV to EBITDA ratio is 19.15, all of which are significantly higher than industry norms.
In comparison to its peers, Danish Power's PE ratio is notably lower than Siemens Energy Industries at 126.13 and ABB at 61.02, both categorized as very expensive. However, it is higher than Apar Industries, which is rated fair with a PE of 38.07. Given these ratios and the overall market context, Danish Power appears overvalued. Additionally, the company's year-to-date return of -22.08% starkly contrasts with the Sensex's positive return of 4.27%, further reinforcing the notion of overvaluation.