Is Focus Lighting overvalued or undervalued?

As of 8 August 2025, the valuation grade for Focus Lighting has moved from very expensive to expensive. The company is currently considered overvalued, with a PE ratio of 81.26, an EV to EBITDA ratio of 36.43, and a Price to Book Value of 4.79. In comparison, peers such as Siemens Energy Industries and ABB are also categorized as very expensive, with PE ratios of 111.97 and 59.17, respectively, indicating that Focus Lighting, while expensive, is slightly more favorable than some of its peers.
Despite this, the company's financial metrics suggest a high valuation relative to its earnings and book value. The PEG ratio stands at 0.00, which typically indicates a lack of growth expectations, and the dividend yield is only 0.49%. Recent stock performance shows a significant decline, with a year-to-date return of -20.95%, contrasting with a positive return of 3.04% for the Sensex. This further reinforces the view that Focus Lighting is overvalued in the current market context.