Is Redtape overvalued or undervalued?

As of 26 September 2025, the valuation grade for Redtape has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its high valuation ratios. The PE ratio stands at 45.48, the Price to Book Value is 10.27, and the EV to EBITDA ratio is 25.35, all of which are significantly above industry norms.
In comparison to its peers, Redtape's PE ratio is notably higher than that of Metro Brands, which has a PE of 92.86, and V-Guard Industries, which stands at 55.65. However, it is worth noting that Redtape's PEG ratio of 4.04 suggests that its growth expectations may not justify its high valuation. Despite a recent decline in stock price, Redtape has outperformed the Sensex over the past month, with a return of 21.81% compared to the Sensex's -0.45%. Overall, Redtape appears to be overvalued in the current market context.