Is Ram Ratna Wires overvalued or undervalued?

As of 13 November 2025, the valuation grade for Ram Ratna Wires has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 41.26, a Price to Book Value of 6.38, and an EV to EBITDA of 17.62. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Ram Ratna Wires' PE ratio significantly exceeds that of Hindustan Zinc at 19.81 and Vedanta at 15.37, both of which are in a more attractive valuation range. Additionally, the PEG ratio of 5.57 further indicates that the stock may be overvalued relative to its growth prospects. Despite a strong performance in the past few years, with a 3-year return of 256.23% compared to the Sensex's 36.71%, the current valuation metrics suggest that investors should exercise caution.