Is Energy Devl.Co. overvalued or undervalued?

As of 18 November 2025, the valuation grade for Energy Development Company has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued. Key ratios include a PE ratio of -8.43, an EV to EBITDA of 10.97, and a Price to Book Value of 7.82, which highlight significant concerns regarding profitability and valuation metrics.
In comparison to peers, NTPC, which is rated as attractive, has a PE ratio of 13.41 and an EV to EBITDA of 10.35, while Tata Power Co. also rated attractive, shows a PE ratio of 30.57 and an EV to EBITDA of 13.17. These comparisons suggest that Energy Development Company is not only underperforming in terms of profitability but also appears to be priced significantly higher than its more stable competitors. Despite recent stock performance showing a 38.25% return over the past week, the longer-term outlook remains concerning, especially with a year-to-date return of -3.94% compared to the Sensex's 8.36%.