Is DEE Development overvalued or undervalued?

As of 9 July 2025, the valuation grade for DEE Development has moved from fair to attractive, indicating a more favorable assessment of its financial metrics. The company is currently considered undervalued, with a PE ratio of 47.47, an EV to EBITDA of 19.83, and a Price to Book Value of 2.59. These ratios suggest that while the company has a high PE ratio, its other valuation metrics are more reasonable compared to its peers.
In comparison to its industry peers, DEE Development's PE ratio is significantly lower than that of Thermax at 64.61 and BEML Ltd at 66.43, both categorized as expensive. Additionally, DEE's EV to EBITDA ratio of 19.83 is more attractive than that of Thermax's 44.05. Despite recent stock performance lagging behind the Sensex, with a 1Y return of -20.38% compared to the Sensex's 3.96%, the overall valuation metrics suggest that DEE Development presents a compelling investment opportunity at its current price of 299.90.