Is Dev Labtech overvalued or undervalued?

As of 8 July 2025, the valuation grade for Dev Labtech has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by a PE ratio of 73.45, an EV to EBITDA ratio of 31.17, and a Price to Book Value of 4.69. These ratios suggest that investors are paying a premium for the company's earnings and assets compared to its peers.
In comparison to its industry peers, Dev Labtech's valuation appears excessive. For instance, Titan Company has a PE ratio of 91.53 and an EV to EBITDA of 55.41, while Kalyan Jewellers stands at a PE of 82.88 and an EV to EBITDA of 41.22, both of which are lower than Dev Labtech's ratios. Additionally, the company's recent stock performance has been notably strong, with a 1-week return of 26.78%, contrasting sharply with the Sensex's minimal gain of 0.02%. However, the long-term trend shows a decline of 23.93% over the past year, further supporting the notion that the stock is currently overvalued.