Is HP Telecom overvalued or undervalued?

As of 22 August 2025, HP Telecom's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its financial ratios. Key ratios include a PE Ratio of 16.86, an EV to EBIT of 11.15, and an EV to EBITDA of 11.10.
In comparison to its peers, HP Telecom's PE ratio is significantly lower than that of Lloyds Enterprises, which stands at 39, and much higher than PTC India, which has a PE of 8.95 and is classified as very attractive. This suggests that while HP Telecom is expensive relative to some peers, it is still more favorable than others in the market. Additionally, the company's recent stock performance has lagged behind the Sensex, with a 1-week return of -2.76% compared to a 0.97% gain in the index, reinforcing the notion of its overvaluation.