Is Inox Wind Energy overvalued or undervalued?

As of 2 June 2025, Inox Wind Energy's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current financial metrics. The PE ratio stands at 95.30, the Price to Book Value is 4.38, and the EV to EBITDA is 19.00, all of which are significantly higher than industry norms.
In comparison to its peers, Inox Wind Energy's PE ratio is notably higher than NTPC Green, which has a PE of 187.3, and Suzlon Energy Ltd., with a PE of 43.7. The PEG ratio for Inox is 0.26, suggesting that while growth prospects may be strong, the current valuation does not justify the price. Despite recent stock performance showing a 57.28% return over the past year compared to the Sensex's 7.55%, the overall valuation still points to overvaluation.