Is Modison overvalued or undervalued?

As of 1 July 2025, Modison's valuation grade has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company is currently considered undervalued based on its financial ratios, with a PE Ratio of 21.63, an EV to EBITDA of 13.79, and a PEG Ratio of 0.47, which suggests that the stock is trading at a reasonable price relative to its growth prospects.
In comparison to its peers, Modison's PE Ratio is significantly lower than that of Larsen & Toubro at 34.34 and Siemens at 57.33, both of which are categorized as attractive and very expensive, respectively. Additionally, Modison's EV to EBITDA is more favorable than Larsen & Toubro's 17.41, highlighting its competitive position within the industry. Despite a year-to-date return of -11.00%, Modison has outperformed the Sensex over the past year with a return of 34.68%, reinforcing the notion that it is undervalued in the current market context.