Is Diffusion Eng overvalued or undervalued?

As of 19 November 2025, Diffusion Eng's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its financial ratios, with a PE ratio of 35.15, an EV to EBITDA of 26.79, and a Price to Book Value of 3.18. These figures suggest that the stock is priced high relative to its earnings and book value.
In comparison to its peers, Diffusion Eng's PE ratio is significantly lower than Thermax's 58.72 and BEML Ltd's 54.65, both categorized as very expensive. However, it is higher than companies like Ajax Engineering, which has a PE of 28.94 and is rated attractive. Additionally, Diffusion Eng's recent stock performance has been underwhelming, with a year-to-date return of -4.48%, contrasting sharply with the Sensex's 9.02% return in the same period, reinforcing the notion that the stock may be overvalued.