Is Energy-Mission overvalued or undervalued?

As of 8 October 2025, the valuation grade for Energy-Mission has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE ratio of 16.02, an EV to EBITDA of 10.43, and a ROCE of 17.55%.
In comparison to its peers, Energy-Mission's PE ratio is substantially lower than that of Thermax, which stands at 56.15, and BEML Ltd, with a PE of 59.51, both categorized as very expensive. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -44.56%, contrasting sharply with the Sensex's positive return of 5.93% in the same period. This further reinforces the notion that Energy-Mission is overvalued in the current market environment.