Is K2 Infragen overvalued or undervalued?

As of 15 September 2025, K2 Infragen's valuation grade has moved from fair to expensive, indicating a shift in its perceived value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 8.81, an EV to EBITDA of 5.77, and a ROE of 36.59%.
In comparison to its peers, K2 Infragen's valuation appears high, especially when contrasted with Rail Vikas, which has a PE ratio of 60.81, and Ircon International, which is rated fair with a PE of 25.86. The recent stock performance shows K2 Infragen significantly outperformed the Sensex over the past week and month, but its year-to-date return of -49.3% highlights underlying challenges. Overall, K2 Infragen's current valuation suggests it is overvalued in the market.