Is Focus Lighting overvalued or undervalued?

As of 6 August 2025, the valuation grade for Focus Lighting has moved from expensive to very expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 83.50, an EV to EBITDA ratio of 37.42, and a Price to Book Value of 4.92. These figures indicate that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Focus Lighting's PE ratio is substantially higher than that of Apar Industries, which has a PE of 40.39 and is rated as fair. Additionally, Siemens Energy Industries is rated very expensive with a PE of 114.82, but even this does not justify the high valuation of Focus Lighting. The company's recent stock performance has also lagged behind the Sensex, with a year-to-date return of -18.85% compared to the Sensex's positive return of 3.93%, further reinforcing the notion that Focus Lighting is overvalued in the current market environment.