Is Dynamatic Tech. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Dynamatic Tech. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios highlight this valuation concern, with a PE ratio of 136.38, an EV to EBITDA of 40.44, and a Price to Book Value of 8.06, all of which are substantially higher than industry norms.
In comparison to its peers, Dynamatic Tech. stands out with its elevated metrics. For instance, Hindustan Aeronautics has a PE ratio of 37.25 and an EV to EBITDA of 27.40, while Bharat Electronics shows a PE of 53.18 and an EV to EBITDA of 29.87, both indicating that Dynamatic Tech.'s valuation is significantly higher than these competitors. Despite its recent stock performance, which has outpaced the Sensex with a 1-year return of 14.95% compared to the Sensex's 4.62%, the underlying valuation metrics suggest that the stock is not justified at its current price level.