Is Faalcon Concepts overvalued or undervalued?

As of 14 July 2025, the valuation grade for Faalcon Concepts has moved from very expensive to expensive, indicating a shift in perception regarding its market valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 11.01, an EV to EBITDA of 6.70, and a ROE of 38.39%.
In comparison to peers, Faalcon Concepts has a lower PE ratio than Shankara Building at 32.96 and Ramco Industries at 13.63, both of which are rated as attractive or very attractive. Additionally, while Faalcon's PEG ratio is 0.00, indicating no growth expectations, it contrasts sharply with Indian Hume Pipe's PEG of 1.37, suggesting a more favorable growth outlook. The recent stock performance shows a decline of 33.26% over the past year, significantly underperforming the Sensex, which has returned 2.15% in the same period, further reinforcing the overvaluation narrative.