Is HP Telecom overvalued or undervalued?

As of 19 September 2025, HP Telecom's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued, with a PE ratio of 19.13, an EV to EBITDA ratio of 12.19, and a Price to Book Value of 3.19. These ratios suggest that HP Telecom is trading at a premium compared to its earnings and book value.
In comparison to its peers, HP Telecom's valuation metrics are notably high. For instance, Elitecon International has a PE ratio of 426.6, while PTC India, which is considered very attractive, has a PE ratio of 8.32. This stark contrast highlights that HP Telecom is not only very expensive relative to its peers but also lacks growth potential, as indicated by its PEG ratio of 0.00. Additionally, while HP Telecom has shown a strong return of 6.32% over the past week compared to a mere 0.85% for the Sensex, the overall valuation still suggests that it is not a favorable investment at this time.