Is Redington overvalued or undervalued?

As of 4 July 2025, Redington's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 22.15, an EV to EBITDA of 12.76, and a dividend yield of 4.15%.
In comparison to its peers, Redington's valuation stands out against Tejas Networks, which has a higher PE ratio of 27.91 and an EV to EBITDA of 11.96, and DC Infotech with a PE of 26.99 and an EV to EBITDA of 16.07. Notably, Redington has demonstrated strong performance with a year-to-date return of 56.59%, significantly outperforming the Sensex's return of 6.77% in the same period, reinforcing its valuation narrative.