Is Evans Electric overvalued or undervalued?

As of 20 June 2025, the valuation grade for Evans Electric 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 13.51, an EV to EBITDA of 10.49, and a PEG ratio of 0.27, which suggests that despite a low growth expectation, the stock price remains high relative to its earnings growth potential.
When compared to peers, Evans Electric's valuation stands out unfavorably. For instance, PTC India, which is rated very attractive, has a PE ratio of only 8.82, while Lloyds Enterprises, also very expensive, has a staggering PE ratio of 156.43. This comparison highlights that Evans Electric is trading at a premium relative to its earnings potential and growth prospects. Additionally, while the company has shown strong returns over the past year, outperforming the Sensex, the current valuation does not justify the stock price given the overall market conditions and peer performance.