Is Nava overvalued or undervalued?

As of 20 June 2025, the valuation grade for Nava has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE Ratio of 15.08, an EV to EBITDA of 8.66, and a PEG Ratio of 0.47, which suggests that while earnings growth may be attractive, the overall valuation is stretched relative to its earnings potential.
In comparison to peers, NTPC is rated very attractive with a PE of 13.88, while Adani Power is considered expensive with a PE of 15.84. This highlights that Nava's valuation is not only high in absolute terms but also relative to its industry peers. Additionally, Nava has outperformed the Sensex significantly in the past year, with a return of 57.82% compared to the Sensex's 6.36%, which may contribute to the current overvaluation perception.