Is Rama Telecom overvalued or undervalued?

As of 18 September 2025, Rama Telecom's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 15.82, an EV to EBITDA of 12.32, and an ROCE of 36.24%.
When compared to peers, Bharti Airtel has a PE ratio of 38.29 and an EV to EBITDA of 12.84, while Bharti Hexacom stands at a PE ratio of 59.24, highlighting that Rama Telecom's valuation metrics are lower but still categorized as very expensive. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-week return of 8.85% compared to the Sensex's 1.67%, reinforcing the notion of its overvaluation in the current market context.