Is Indosolar overvalued or undervalued?

As of 8 August 2025, the valuation grade for Indosolar has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios include a PE ratio of 28.70, an EV to EBIT of 24.04, and an EV to Sales of 5.03, all of which suggest that the stock is trading at a premium compared to its earnings and sales.
In comparison to its peers, Indosolar's valuation appears particularly high, especially when looking at Waaree Energies with a PE of 39.6 and EV to EBITDA of 25.69, and Suzlon Energy with a PE of 41.45 and EV to EBITDA of 45.79. The stark contrast in these ratios reinforces the notion that Indosolar is overvalued. Additionally, the company has shown remarkable stock performance, with a 1-week return of 27.58%, significantly outperforming the Sensex, which declined by 0.92% in the same period.