Is Indus Towers overvalued or undervalued?

As of 26 August 2025, the valuation grade for Indus Towers has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 9.47, an EV to EBITDA of 5.34, and a PEG ratio of 0.20. Notably, Indus Towers shows strong returns on capital, with a ROCE of 28.46% and an ROE of 30.56%, indicating efficient use of equity and capital.
In comparison to its peers, Indus Towers' valuation metrics are more favorable than those of companies like Affle 3i, which has a PE of 66.25, and Railtel Corporation, which has a PE of 51.46. This suggests that Indus Towers is positioned competitively within the telecom equipment sector. Additionally, while the stock has underperformed the Sensex over the past year, it has shown resilience with a 70.60% return over the last three years, reinforcing its potential value in the market.