Is Prostarm Info overvalued or undervalued?

As of 17 October 2025, Prostarm Info's valuation grade has moved from very expensive to expensive, indicating a slight improvement but still suggesting high valuation concerns. The company appears to be overvalued, with a PE ratio of 34.50, an EV to EBITDA of 23.63, and a Price to Book Value of 8.98. Comparatively, Siemens Energy Industries, which is classified as very expensive, has a significantly higher PE ratio of 113.01, while Apar Industries, deemed fair, has a PE ratio of 39.48, highlighting that Prostarm Info's valuation remains on the higher end relative to its peers.
Despite the recent decline in stock price, with a 1-month return of -19.82% compared to a Sensex return of 1.52%, the company's financial metrics suggest it is not positioned favorably in the current market. With a PEG ratio of 0.00 and strong ROE of 26.01%, the fundamentals indicate potential for growth, but the current valuation levels suggest that investors may be overpaying for future earnings.