Is Falcon overvalued or undervalued?

As of 8 October 2025, Falcon's valuation grade has moved from does not qualify to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when compared to its peers in the industrial manufacturing sector. Key ratios include a PE Ratio of 8.13, an EV to EBIT of 8.26, and an EV to EBITDA of 8.06, all of which suggest that Falcon is trading at a discount relative to its earnings potential.
In comparison to its peers, Falcon's valuation stands out as more favorable; for instance, Rail Vikas has a PE Ratio of 60.63 and an EV to EBITDA of 74.03, while Tube Investments shows an even higher PE Ratio of 93.6. This stark contrast highlights Falcon's attractive valuation relative to its competitors, which are deemed expensive. Additionally, Falcon's recent stock performance has lagged behind the Sensex, with a year-to-date return of -66.19% compared to the Sensex's 5.93%, further reinforcing the notion that the stock may be undervalued.