Is Droneacharya Aer overvalued or undervalued?

As of 29 September 2025, the valuation grade for Droneacharya Aer has moved from does not qualify to risky. The company is currently assessed as overvalued, given its negative PE ratio of -10.92, an EV to EBITDA of -9.43, and a ROCE of -28.71%. These figures indicate significant financial distress and inefficiency in generating returns on capital.
In comparison to its peers, Droneacharya Aer stands out with a notably lower PE ratio than Veranda Learning, which has a PE of 49.18, and significantly worse than Shanti Education, which is very expensive at 257.41. The company's recent stock performance has also been poor, with a year-to-date return of -47.56%, contrasting sharply with the Sensex's gain of 2.85% during the same period. Overall, the combination of negative ratios and poor stock performance reinforces the conclusion that Droneacharya Aer is overvalued in its current state.