Is Railtel Corpn. overvalued or undervalued?

As of 14 November 2025, Railtel Corporation's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on key financial ratios, including a PE Ratio of 35.62, an EV to EBITDA of 19.68, and a Price to Book Value of 5.44. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison with peers, Railtel's valuation stands out as significantly higher; for instance, Indus Towers has a PE Ratio of 11.89 and an EV to EBITDA of 6.29, while Black Box shows a PE of 34.68 and an EV to EBITDA of 19.20. This disparity highlights Railtel's expensive valuation relative to its peers in the telecom services sector. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -11.41%, contrasting with the Sensex's gain of 8.22%, reinforcing the notion that Railtel may be overvalued in the current market environment.