Is Evans Electric overvalued or undervalued?

As of 12 June 2025, the valuation grade for Evans Electric has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 13.01, an EV to EBIT of 10.33, and a PEG ratio of 0.26, which suggests that while the company is generating strong returns, its valuation remains high relative to its earnings growth potential.
In comparison to peers, Evans Electric's PE ratio is significantly lower than that of MMTC, which stands at 115.3, and Lloyds Enterprises, which has a PE of 162.14, both classified as very expensive. However, it is higher than PTC India, which is very attractive with a PE of 9.15. Notably, Evans Electric has demonstrated strong performance with a 1-year stock return of 14.27%, outpacing the Sensex return of 6.64%, reinforcing the notion that while the stock may be overvalued, it has been delivering better returns relative to the broader market.