Is Focus Lighting overvalued or undervalued?

As of 27 June 2025, the valuation grade for Focus Lighting has moved from very expensive to expensive, indicating a slight shift in perception but still reflecting a high valuation. The company is currently considered overvalued. Key ratios include a PE Ratio of 47.87, an EV to EBITDA of 28.22, and a Price to Book Value of 5.19, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, Focus Lighting's PE Ratio is significantly higher than that of Apar Industries, which stands at 41.26, and HPL Electric, which has a PE of 37.08, both of which are categorized as fair or attractive. This disparity highlights the overvaluation of Focus Lighting relative to its peers. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -14.28%, contrasting sharply with the Sensex's positive return of 8.43% during the same period, further reinforcing the notion of overvaluation.