Is Focus Lighting overvalued or undervalued?

As of 3 July 2025, the valuation grade for Focus Lighting has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. The PE ratio stands at 47.15, the Price to Book Value is 5.11, and the EV to EBITDA is 27.81, all of which are significantly higher than many peers in the industry.
In comparison, A B B has a PE ratio of 65.88 and EV to EBITDA of 51.2, while Apar Industries, considered fairly valued, has a PE ratio of 43.6 and EV to EBITDA of 22.9. These comparisons highlight that Focus Lighting's valuation remains elevated relative to its peers. Additionally, the company's recent stock performance shows a decline of 28.07% over the past year, contrasting with a modest 4.61% gain in the Sensex, further reinforcing the notion that Focus Lighting is currently overvalued.