Is Falcon overvalued or undervalued?

As of 2 January 2025, Falcon's valuation grade has moved from very expensive to does not qualify, indicating a significant shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 15.75, an EV to EBIT of 14.59, and an ROE of 11.59%.
In comparison to its peers, Falcon's PE ratio is notably lower than Rail Vikas Nigam Ltd., which has a PE of 69.76, and Tube Investments of India Ltd., with a PE of 87.5, both categorized as very expensive. Additionally, Falcon's EV to EBITDA stands at 14.40, which is more favorable compared to the higher valuations of its peers. Despite a recent decline in stock performance relative to the Sensex, with a year-to-date return of -40.95% compared to the Sensex's 6.23%, the current valuation metrics suggest that Falcon presents a buying opportunity in the industrial manufacturing sector.