Is Insolation Ener overvalued or undervalued?

As of 8 October 2025, the valuation grade for Insolation Ener has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 32.25, an EV to EBITDA of 22.78, and a Price to Book Value of 8.97. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Insolation Ener's PE ratio is lower than Waaree Energies at 43.06 and NTPC Green Energy at 169.9, both of which are categorized as very expensive. However, it is still positioned in the expensive range, indicating a potential risk for investors. Notably, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -52.04% compared to the Sensex's 4.65%. This further reinforces the conclusion that Insolation Ener is currently overvalued.