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 value. The company is currently overvalued, with a PE ratio of 29.75, a Price to Book Value of 5.41, and an EV to EBITDA ratio of 19.81. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Danish Power's valuation appears excessive, especially when contrasted with Siemens Energy Industries, which has a PE ratio of 118.28, and ABB, with a PE ratio of 61.77. While both of these companies are also classified as very expensive, Danish Power's ratios do not justify its current price level. Notably, the company's recent stock performance has outpaced the Sensex over the past week and month, but it has underperformed year-to-date, which further underscores the concerns regarding its valuation.