Is Deccan Transcon overvalued or undervalued?

As of 6 October 2025, the valuation grade for Deccan Transcon has moved from very attractive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 11.97, an EV to EBITDA of 10.22, and a Price to Book Value of 0.83, which suggest that despite a relatively low PE ratio, the overall valuation is not justified given the current market conditions. In comparison to its peers, Deccan Transcon's valuation appears less favorable. For instance, Container Corporation, categorized as very expensive, has a PE ratio of 30.7, while Transport Corporation, rated as fair, has a PE of 22.08. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -45.98%, significantly underperforming the Sensex's 6.06% return in the same period. This further reinforces the conclusion that Deccan Transcon is overvalued in its current state.