Is Insolation Ener overvalued or undervalued?

As of 24 October 2025, the valuation grade for Insolation Ener has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial ratios. Key metrics include a PE ratio of 34.48, an EV to EBITDA ratio of 24.48, and a PEG ratio of 0.29, which suggests that despite a high valuation, the growth potential may not justify the price.
In comparison to its peers, Insolation Ener's PE ratio is lower than Waaree Energies at 37.55 and NTPC Green Energy at 174.78, but it is on par with Suzlon Energy, which has a PE of 34.96. The EV to EBITDA ratio of 24.48 is also competitive compared to peers like Premier Energies at 24.13. Despite a recent surge in stock price, the year-to-date return of -48.74% starkly contrasts with the Sensex's 7.77%, reinforcing the notion that the stock may be overvalued in the current market environment.