Is Jupiter Wagons overvalued or undervalued?

As of 26 August 2025, the valuation grade for Jupiter Wagons has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting high valuation metrics. The company is currently considered overvalued. Key ratios include a PE ratio of 43.52, an EV to EBITDA of 27.63, and a Price to Book Value of 5.10, all of which are significantly higher than many peers in the industrial manufacturing sector.
In comparison, Bosch has a PE ratio of 52.5 and an EV to EBITDA of 47.44, while Samvardhan Motherson stands out with a more attractive PE of 28.74 and an EV to EBITDA of 10.65. This suggests that Jupiter Wagons is trading at a premium relative to its peers, which may not be justified given its current performance metrics. Additionally, the company's stock has underperformed against the Sensex, particularly in the year-to-date and one-year periods, with returns of -34.25% and -39.49%, respectively, compared to the Sensex's positive return.