Is Rappid Valves overvalued or undervalued?

As of 19 September 2025, Rappid Valves' valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently overvalued, with a PE ratio of 26.22, an EV to EBIT of 17.21, and an EV to EBITDA of 15.86. These ratios suggest that investors are paying a premium for the stock relative to its earnings and cash flow generation capabilities.
In comparison to its peers, Rappid Valves' PE ratio is lower than that of Larsen & Toubro, which stands at 32.64, but higher than many others in the sector, such as IRB Infrastructure Development at 31.57. The PEG ratio of Rappid Valves is notably at 0.00, indicating no growth expectations priced in, which is concerning given its current valuation. Additionally, while Rappid Valves has shown a 3.78% return over the past week, its year-to-date performance is down by 10.45%, contrasting with the Sensex's 7.11% gain, further reinforcing the notion that the stock may be overvalued in the current market environment.