Is Rainbow Foundat. overvalued or undervalued?

As of 14 August 2025, the valuation grade for Rainbow Foundation has moved from very expensive to expensive. The company is currently considered overvalued based on its high PE ratio of 74.04, a Price to Book Value of 8.54, and an EV to EBITDA of 21.30. These ratios indicate that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Rainbow Foundation's PE ratio significantly exceeds that of DLF at 38.85 and Lodha Developers at 41.53, both of which are categorized as very expensive. Additionally, the PEG ratio of 0.90 suggests that despite the high valuation, there may be growth potential. Notably, Rainbow Foundation has outperformed the Sensex with a year-to-date return of 280.77%, while the Sensex has only returned 3.15% in the same period, reinforcing the notion of its overvaluation in the current market context.