Is Rainbow Foundat. overvalued or undervalued?

Oct 02 2025 08:05 AM IST
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As of October 1, 2025, Rainbow Foundation is considered undervalued with an attractive valuation grade, a PE ratio of 51.18, and a year-to-date return of 163.21%, significantly outperforming the Sensex's 3.64% return.
As of 1 October 2025, the valuation grade for Rainbow Foundation has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 51.18, an EV to EBITDA ratio of 16.11, and a PEG ratio of 0.62, suggesting that its growth potential is not fully reflected in its current price.

In comparison to its peers, Rainbow Foundation's PE ratio is significantly higher than that of DLF at 37.36 and Lodha Developers at 38.47, both categorized as very expensive. Additionally, despite its attractive valuation, the company has outperformed the Sensex with a remarkable year-to-date return of 163.21%, contrasting sharply with the Sensex's modest 3.64% return. This performance, alongside its strong valuation metrics, reinforces the conclusion that Rainbow Foundation is currently undervalued in the market.
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