Is Rainbow Foundat. overvalued or undervalued?

Oct 03 2025 08:05 AM IST
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As of October 1, 2025, Rainbow Foundation's valuation has improved to attractive, indicating it is undervalued with a PEG ratio of 0.62 and a strong year-to-date return of 163.21%, despite a high PE ratio of 51.18 compared to peers like DLF and Lodha Developers.
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, supported by a PEG ratio of 0.62, which suggests growth potential relative to its price. Additionally, the PE ratio stands at 51.18, and the EV to EBITDA ratio is 16.11, both of which are high but reflect the company's growth prospects in the realty sector.

When compared to peers, Rainbow Foundation's PE ratio is significantly higher than DLF's 37.36 and Lodha Developers' 38.47, indicating that while it may appear expensive, its growth potential justifies the valuation. The company has outperformed the Sensex with a year-to-date return of 163.21% compared to the Sensex's 3.64%, reinforcing the notion that it is undervalued relative to its growth trajectory.
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