Is Ganesh Green overvalued or undervalued?

As of 28 August 2025, the valuation grade for Ganesh Green has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 34.81, an EV to EBITDA ratio of 24.55, and a Price to Book Value of 19.92. These ratios suggest that investors are paying a premium for the stock compared to its earnings and book value.
In comparison to its peers, Ganesh Green's valuation appears steep. For instance, Thermax has a PE ratio of 56.6 and an EV to EBITDA of 37.28, while BEML Ltd shows a PE of 53.45 and an EV to EBITDA of 31.98, both categorized as expensive. The notable outperformance in ROCE at 44.13% and ROE at 57.22% does not sufficiently justify the high valuation, especially as the stock has underperformed against the Sensex, with a year-to-date return of -25.74% compared to the Sensex's 3.62%.