Is Jupiter Wagons overvalued or undervalued?

As of 12 September 2025, Jupiter Wagons' valuation grade has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 44.38, a Price to Book Value of 5.20, and an EV to EBITDA ratio of 28.19. These ratios suggest that the stock is priced at a premium compared to its earnings and book value.
In comparison with peers, Bosch has a PE ratio of 53 and an EV to EBITDA of 47.90, while Samvardhana Motherson International, which is rated attractive, has a PE of 32.35 and an EV to EBITDA of 11.86. This highlights that Jupiter Wagons is trading at a higher valuation despite its lower return metrics, such as a ROCE of 20.69% and a ROE of 13.88%. Notably, while the stock has underperformed with a YTD return of -32.85% compared to the Sensex's 4.82%, it has shown remarkable long-term growth, which may not justify its current high valuation.