Is Railtel Corpn. overvalued or undervalued?

As of 3 November 2025, Railtel Corporation's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 36.82, an EV to EBITDA of 19.88, and a PEG ratio of 2.63, all of which suggest that the stock is trading at a premium compared to its earnings and growth potential.
In comparison to its peers, Railtel's PE ratio is substantially higher than Indus Towers, which has a PE of 11.02, and Black Box, which stands at 34.18. This stark contrast highlights Railtel's overvaluation in the telecom services sector. Additionally, while Railtel has shown a strong return on capital employed (ROCE) of 23.88%, its stock performance has lagged behind the Sensex over the past year, with a decline of 12.22% compared to the Sensex's gain of 5.34%.