Is Energy-Mission overvalued or undervalued?

As of 16 October 2025, the valuation grade for Energy-Mission has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 15.65, an EV to EBITDA of 10.21, and a ROCE of 17.55%.
In comparison to its peers, Energy-Mission's valuation stands out as very expensive, especially when contrasted with Thermax, which has a PE Ratio of 56.18, and BEML Ltd, with a PE Ratio of 61.63. The substantial difference in these ratios suggests that Energy-Mission is not only overvalued but also lacks the growth potential indicated by its PEG Ratio of 0.00. Additionally, the company's stock performance has lagged significantly behind the Sensex, with a year-to-date return of -45.85% compared to the Sensex's gain of 8.21%.