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 shift in its market perception. The company is currently deemed overvalued. Key ratios include a PE ratio of 19.13, an EV to EBIT of 12.24, and an EV to EBITDA of 12.19, all of which suggest that the stock is trading at a premium compared to its earnings and operational performance.
In comparison to its peers, HP Telecom's valuation stands out as very expensive, especially when contrasted with PTC India, which has a much lower PE ratio of 8.32 and an EV to EBITDA of 4.43, indicating a more attractive valuation. Other peers like Lloyds Enterprises also reflect higher valuations with a PE of 30.37. Additionally, HP Telecom's recent stock performance has outpaced the Sensex, with a 1-week return of 6.32% compared to the Sensex's 0.85%, although this does not mitigate its overvaluation status.