Is Faalcon Concepts overvalued or undervalued?
As of June 23, 2025, Faalcon Concepts is overvalued with a PE ratio of 11.65, a Price to Book Value of 4.47, and an EV to EBITDA of 7.04, indicating it trades at a premium compared to earnings and assets, despite a poor year-to-date return of -18.24% against the Sensex's 4.81% gain.
As of 23 June 2025, Faalcon Concepts has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 11.65, a Price to Book Value of 4.47, and an EV to EBITDA of 7.04. These ratios indicate that the stock is trading at a premium compared to its earnings and book value, suggesting that investors are paying more for each unit of earnings and assets than is typical for the industry.In comparison to its peers, Faalcon Concepts' PE ratio is lower than that of Shankara Building, which has a PE of 32.01, and Ramco Industries, which stands at 12.17. However, it is significantly higher than Maple Inf. Trust, which is loss-making and has a PE ratio of 21.20. The recent stock performance has been poor, with a year-to-date return of -18.24%, contrasting sharply with the Sensex's gain of 4.81% during the same period, further reinforcing the notion that the stock is overvalued.
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