Is Prostarm Info overvalued or undervalued?

As of 4 July 2025, Prostarm Info's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued based on its high PE ratio of 29.40, a Price to Book Value of 10.41, and an EV to EBITDA of 19.87. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison with peers, Prostarm Info's valuation stands out as it has a similar PE ratio to A B B, which is at 65.82, and a much higher EV to EBITDA than HPL Electric, which is at 16.86. This highlights that Prostarm Info is not only overvalued relative to its peers but also lacks a compelling growth narrative, as indicated by its PEG ratio of 0.00. Additionally, the company's stock has outperformed the Sensex over the past week and month, with returns of 7.33% and 27.01%, respectively, further complicating the valuation narrative.