Is Promax Power overvalued or undervalued?

As of 16 September 2025, the valuation grade for Promax Power has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, with a PE ratio of 35.79, an EV to EBITDA of 19.76, and a Price to Book Value of 3.02. In comparison to its peers, NTPC, which is rated as attractive, has a much lower PE ratio of 13.56 and an EV to EBITDA of 10.70, while Tata Power Co. also shows a more favorable PE ratio of 30.63.
Promax Power's financial metrics suggest it is trading at a premium relative to its industry peers, with a PEG ratio of 0.00 indicating no growth expectations priced in. Additionally, the company's recent stock performance has outpaced the Sensex over the past week and month, but its year-to-date and one-year returns are significantly negative, reinforcing the notion of overvaluation.