Is Radiowalla overvalued or undervalued?

As of 4 November 2025, Radiowalla's valuation grade has moved from fair to expensive, indicating a shift in market perception. The company is currently overvalued, as evidenced by a PE ratio of 54.78, an EV to EBIT of 27.59, and an EV to EBITDA of 19.82. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Radiowalla's PE ratio is higher than Altius Telecom's 55.48 and significantly above Sagility's fair valuation with a PE of 30.21. This disparity highlights that Radiowalla may not justify its current price given its lower return on equity of 3.98% and return on capital employed of 12.30%. Furthermore, the company's recent stock performance has been disappointing, with a year-to-date return of -46.32%, contrasting sharply with the Sensex's gain of 8.26% during the same period.