Is Railtel Corpn. overvalued or undervalued?

As of 14 November 2025, Railtel Corpn. has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 35.62, while the Price to Book Value is 5.44, and the EV to EBITDA ratio is 19.68. These figures indicate a significant premium compared to its peers, such as Indus Towers with a PE of 11.89 and EV to EBITDA of 6.29, highlighting the relative overvaluation of Railtel.
In comparison to its industry, Railtel's PEG ratio of 2.55 further emphasizes its expensive valuation, especially when juxtaposed with Affle 3i, which is categorized as very expensive with a PEG of 2.63. Despite a strong return of 186.17% over the past three years, the recent performance shows a decline of 11.41% year-to-date, contrasting with the Sensex's 8.22% gain, reinforcing the notion that the stock may be overextended at its current price of 358.00.