Is Danish Power overvalued or undervalued?

As of 4 November 2025, the valuation grade for Danish Power has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a PE ratio of 29.75, an EV to EBITDA ratio of 19.81, and a Price to Book Value of 5.41. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Danish Power's PE ratio is notably lower than Siemens Energy Industries at 118.28 and ABB at 61.77, both of which are also classified as very expensive. However, when compared to BHEL, which has a PE ratio of 166.58 and is categorized as expensive, Danish Power appears to be in a more favorable position. Despite recent stock performance showing a 21.17% return over the past year, which outperformed the Sensex's 6.68%, the overall valuation metrics suggest that the stock is not justified at its current price level.