Is Prec. Electronic overvalued or undervalued?

As of 14 November 2025, the valuation grade for Prec. Electronic has moved from very expensive to expensive, indicating a slight easing in perceived overvaluation. However, the company remains overvalued based on its current metrics. The PE ratio stands at an exceptionally high 367.37, while the EV to EBITDA ratio is at 50.08, both significantly above industry norms. Additionally, the ROCE is only 4.37%, suggesting inefficiencies in generating returns relative to capital employed.
In comparison to peers, Prec. Electronic's valuation metrics are starkly higher than those of companies like Genus Power, which has a PE ratio of 21.95 and an EV to EBITDA of 14.55, indicating a more reasonable valuation. Similarly, Kaynes Tech, classified as very expensive, has a PE of 112.14, yet still falls short of Prec. Electronic's extreme valuation. Overall, Prec. Electronic appears to be overvalued in the current market context, despite its strong historical stock performance, which has outpaced the Sensex significantly over the past few years.