Is Engineers India overvalued or undervalued?

As of 20 June 2025, the valuation grade for Engineers India has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 21.44, while the EV to EBITDA ratio is 21.83, and the Price to Book Value is 5.22, all suggesting a premium valuation relative to its earnings and book value.
When compared to peers, Engineers India’s valuation metrics are notably high, especially against companies like Ircon International, which has a PE ratio of 25.53 and an EV to EBITDA of 20.92, and Shriram Pistons, with a PE ratio of 20.48. Despite a strong return over three years at 292.90%, the recent performance shows a decline of 14.15% over the past year, contrasting with the Sensex's 6.36% gain, further reinforcing the notion that Engineers India is overvalued in the current market environment.