Is ION Exchange overvalued or undervalued?

As of 17 July 2025, the valuation grade for ION Exchange has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 39.36, an EV to EBITDA ratio of 27.35, and a ROCE of 23.43%. In comparison to its peers, Thermax has a significantly higher PE ratio of 72.93, while Praj Industries, which is also rated fair, has a PE of 47.32.
Despite the fair valuation, ION Exchange's stock has underperformed relative to the Sensex year-to-date, with a return of -14.85% compared to the Sensex's 5.27%. However, over a three-year period, the stock has shown impressive growth of 203.65%, indicating strong long-term potential despite recent volatility.