Is KP Green Engg. overvalued or undervalued?

As of 1 October 2025, the valuation grade for KP Green Engineering has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued based on key financial ratios, including a PE ratio of 35.06, a Price to Book Value of 8.01, and an EV to EBITDA ratio of 24.77. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, KP Green Engineering's valuation stands out as notably high, particularly when juxtaposed with Tata Steel, which has a PE ratio of 43.09 and an EV to EBITDA of 11.21, and Jindal Steel, with a PE of 25.83 and an EV to EBITDA of 12.52. The company's PEG ratio of 0.32 further emphasizes its overvaluation, especially when compared to the industry average. Additionally, KP Green Engineering's recent stock performance has lagged behind the Sensex, with a year-to-date return of -7.39% compared to the Sensex's 3.64%, reinforcing the notion that the stock may be overvalued in the current market environment.