Is DEE Development overvalued or undervalued?

As of 7 November 2025, DEE Development's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 32.71, an EV to EBITDA of 35.96, and a Price to Book Value of 0.19, which suggest that while the company has a low book value relative to its market price, its earnings multiples are relatively high compared to peers.
In comparison to its industry peers, DEE Development's PE ratio is lower than Thermax's 56.7 and BEML Ltd's 56.53, both of which are categorized as expensive. However, it is higher than Action Construction Equipment's PE of 29.13, which is also considered expensive. The recent stock performance has been underwhelming, with a year-to-date return of -23.93%, contrasting sharply with the Sensex's positive return of 6.50% during the same period, further reinforcing the view that DEE Development is currently overvalued.