Is Rail Vikas overvalued or undervalued?

As of 11 July 2025, the valuation grade for Rail Vikas 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 62.08, an EV to EBITDA ratio of 71.64, and a Price to Book Value of 9.05, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, Rail Vikas has a significantly higher PE ratio than Ircon International, which stands at 24.72, and even higher than the expensive Tube Investments at 81.67. This disparity highlights the overvaluation concern for Rail Vikas. Additionally, the company has underperformed against the Sensex over various periods, particularly with a 1-year stock return of -39.44% compared to the Sensex's 3.26%, further reinforcing the notion that it may be overvalued in the current market environment.