Is Dev Labtech overvalued or undervalued?

As of 14 July 2025, the valuation grade for Dev Labtech has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. The PE ratio stands at 67.14, while the EV to EBITDA ratio is 28.51, both of which are significantly higher than many peers in the industry. For comparison, Titan Company, which is rated fair, has a PE of 90.46, and Kalyan Jewellers, also expensive, has a PE of 84.54.
Dev Labtech's key ratios suggest that it is overvalued, especially with a ROCE of 9.27% and ROE of 6.38%, which do not justify its high valuation multiples. The company's recent stock performance shows a 1-month return of 18.62%, outperforming the Sensex's 1.40% return, but its year-to-date performance is negative at -5.18% compared to the Sensex's 5.27%. Overall, despite some short-term gains, the underlying valuation metrics indicate that Dev Labtech is overvalued in the current market environment.