Is RattanIndia Pow. overvalued or undervalued?

As of 8 May 2025, RattanIndia Power has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 27.10, an EV to EBITDA of 15.85, and a PEG ratio of 0.24, indicating strong growth potential relative to its price.
In comparison to its peers, RattanIndia Power's valuation appears favorable. For instance, NTPC has a PE ratio of 13.78 and an EV to EBITDA of 10.37, while Tata Power Co. has a PE of 31.57 and an EV to EBITDA of 12.92. Despite a recent decline in stock performance year-to-date, where it has underperformed the Sensex, the long-term returns over 3 years and 5 years show significant outperformance, suggesting that the current price may not reflect the company's true value.