Is Nava overvalued or undervalued?

As of 10 November 2025, the valuation grade for Nava has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued in the current market context. Key ratios include a PE ratio of 17.03, a Price to Book Value of 0.19, and an EV to EBITDA of -4.53, which suggest that despite the grade change, the company's financial metrics do not support a strong valuation.
When compared to peers, Nava's PE ratio is higher than NTPC's 13.3 and lower than Adani Power's 24.05, but its negative EV to EBITDA indicates significant operational challenges. Additionally, the PEG ratio stands at 0.00, which further complicates its valuation narrative. While Nava has outperformed the Sensex over the longer term, with a 3-year return of 479.52% compared to the Sensex's 37.82%, the current valuation metrics suggest that investors should approach with caution, as the stock appears to be overvalued.