Is Rail Vikas overvalued or undervalued?

As of 15 July 2025, the valuation grade for Rail Vikas has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 62.35, an EV to EBIT of 73.96, and an EV to EBITDA of 71.94, all of which are considerably high compared to industry norms.
In comparison with peers, Rail Vikas's PE ratio is notably higher than that of Ircon International, which stands at 24.84, and even higher than Triveni Turbine's 58.74. The PEG ratio for Rail Vikas is 0.00, suggesting that the stock may not be justified by its growth prospects. Despite recent underperformance in stock returns relative to the Sensex, particularly over the past year with a decline of 38.8% compared to the Sensex's 2.36% gain, the valuation metrics indicate that Rail Vikas is overvalued in the current market environment.