Is Enviro Infra overvalued or undervalued?

As of 3 July 2025, the valuation grade for Enviro Infra has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 23.72, while the EV to EBITDA ratio is 14.92, and the Price to Book Value is 4.13. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, Enviro Infra's PE ratio is significantly lower than Thermax's 65.57 and BEML Ltd's 63.38, both of which are categorized as very expensive. Despite its high ROCE of 40.89% and ROE of 17.40%, the overall valuation metrics indicate that the stock is not positioned favorably in the market. Additionally, the company's year-to-date return of -24.84% contrasts sharply with the Sensex's gain of 6.53%, reinforcing the notion that Enviro Infra is overvalued in its current state.