Is Misquita Engg. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Misquita Engineering has moved from risky to very expensive. The company is currently overvalued, as indicated by its high PE ratio of 46.41, an EV to EBIT ratio of 45.70, and a Price to Book Value of 4.91. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Misquita Engineering's valuation stands out as particularly high. For instance, Rail Vikas has a PE ratio of 63.64 and an EV to EBITDA of 77.64, while AIA Engineering shows a PE of 26.26 and an EV to EBITDA of 21.67. Despite these peers also being categorized as very expensive, Misquita's ratios reflect a significant premium. Notably, while the company has experienced a 7.03% return over the past week, it has underperformed the Sensex significantly over the longer term, with a year-to-date decline of 29.59% compared to a 5.74% gain in the Sensex.