Is Faalcon Concepts overvalued or undervalued?

As of 31 October 2025, Faalcon Concepts has moved from an expensive to a very expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 14.58, an EV to EBITDA of 8.62, and a ROE of 38.39%.
When compared to peers, Ramco Industries has a PE ratio of 14.7 and an EV to EBITDA of 16.8, while Indian Hume Pipe shows a more attractive PE of 22.82 and an EV to EBITDA of 10.6. These comparisons highlight that Faalcon Concepts is priced at a premium relative to its peers, indicating a lack of justification for its current valuation. Additionally, while the stock has outperformed the Sensex over the past week with a return of 28.09%, its longer-term performance shows a decline of 13.64% over the past year, further supporting the conclusion of overvaluation.