Is Dynamatic Tech. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Dynamatic Tech. has moved from expensive to very expensive. The company appears to be overvalued based on its high valuation metrics, including a PE ratio of 136.38, an EV to EBITDA of 40.44, and a Price to Book Value of 8.06. These figures indicate that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Dynamatic Tech. stands out with a much higher PE ratio than Hindustan Aeronautics at 37.25 and Bharat Electronics at 53.18, both of which are also classified as very expensive. The company's return on equity (ROE) is relatively low at 6.00%, which further suggests that the current valuation may not be justified. While the stock has outperformed the Sensex in the past year with a return of 14.95% compared to 4.62%, this does not mitigate the concerns regarding its overvaluation.