Is Promax Power overvalued or undervalued?

As of 17 September 2025, the valuation grade for Promax Power has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 35.79, an EV to EBITDA of 19.76, and a ROCE of 12.92%.
In comparison to its peers, NTPC, which is rated attractive, has a significantly lower PE ratio of 13.61 and an EV to EBITDA of 10.72, while Tata Power Co. is also attractive with a PE of 30.52 and an EV to EBITDA of 12.31. Promax Power's high valuation ratios suggest it is trading at a premium compared to its peers, reinforcing the conclusion of being overvalued. Notably, despite strong recent returns of 24.07% over the past week, the year-to-date performance shows a decline of 24.33%, which further highlights concerns about its current valuation.