Is EMS overvalued or undervalued?

As of 2 September 2025, the valuation grade for EMS has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its key financial ratios, including a PE ratio of 16.07, an EV to EBITDA of 11.19, and a PEG ratio of 0.75. These figures suggest that EMS is trading at a premium compared to its earnings and growth potential.
In comparison to its peers, EMS's valuation stands out as relatively high, especially when contrasted with Rail Vikas, which has a significantly higher PE ratio of 57.91, and Tube Investments, which is even more expensive with a PE of 90.78. The recent performance of EMS has also been underwhelming, with a year-to-date return of -36.94%, which starkly contrasts with the Sensex's positive return of 2.58% over the same period, reinforcing the notion that EMS is overvalued in the current market environment.