Is Ramkrishna Forg. overvalued or undervalued?

As of 2 July 2025, the valuation grade for Ramkrishna Forg. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued. Key ratios include a PE ratio of 28.20, an EV to EBITDA of 21.30, and a PEG ratio of 0.76, which suggests that the stock may offer growth at a reasonable price compared to its earnings potential.
In comparison to its peers, Ramkrishna Forg. has a PE ratio that is significantly lower than Bharat Forge's 60.74 and Sona BLW Precision's 48.02, both of which are considered very expensive. Additionally, the EV to EBITDA ratio of 21.30 is more competitive than that of Bharat Forge, which stands at 24.80. Despite recent underperformance with a year-to-date return of -26.68% compared to the Sensex's 6.75%, the company's valuation metrics suggest it is positioned well within its industry.