Is Incap overvalued or undervalued?

Sep 23 2025 08:02 AM IST
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As of September 22, 2025, Incap is considered overvalued with a PE ratio of 52.25 and other high valuation ratios, despite a strong 1-year stock return of 45.08%, especially when compared to peers like Genus Power and Cyient DLM.
As of 22 September 2025, the valuation grade for Incap has moved from fair to expensive. The company is currently overvalued based on its high valuation ratios. The PE ratio stands at 52.25, while the EV to EBITDA ratio is 34.59, and the Price to Book Value is 3.54, all indicating a premium valuation compared to industry norms.

Incap's valuation can be compared with peers such as Genus Power, which has a PE ratio of 25.16, and Cyient DLM, with a PE ratio of 58.45. Both peers highlight the elevated valuation of Incap within its sector. Furthermore, while Incap has shown strong stock performance with a 1-year return of 45.08% compared to a -2.82% return for the Sensex, this does not mitigate the current overvaluation indicated by its financial ratios.
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