Is Reliance Power overvalued or undervalued?

Aug 28 2025 08:03 AM IST
share
Share Via
As of August 26, 2025, Reliance Power's valuation has improved to attractive, showing it is undervalued with a PE ratio of -3581.79, an EV to EBITDA of 16.16, and a Price to Book Value of 1.13, significantly lower than peers like NTPC and Tata Power, despite short-term underperformance against the Sensex but a strong 175.55% return over three years.
As of 26 August 2025, Reliance Power's valuation grade has moved from fair to attractive. The company appears to be undervalued based on its current metrics. Key ratios include a PE ratio of -3581.79, an EV to EBITDA of 16.16, and a Price to Book Value of 1.13.

In comparison to peers, NTPC has a PE ratio of 13.49 and an EV to EBITDA of 10.66, while Tata Power Co. shows a PE of 29.23 and an EV to EBITDA of 11.94, indicating that Reliance Power is trading at a significant discount relative to these competitors. Additionally, while Reliance Power's stock has underperformed the Sensex in the short term, it has outpaced the index over the longer term, particularly with a 175.55% return over three years.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News
Most Read
Why is Rap Corp falling/rising?
8 seconds ago
share
Share Via
Why is Ugar Sugar Works falling/rising?
13 seconds ago
share
Share Via
Why is GIC Housing Fin falling/rising?
16 seconds ago
share
Share Via
Why is Reliance Infra. falling/rising?
25 seconds ago
share
Share Via
Why is Shriram Finance falling/rising?
30 seconds ago
share
Share Via
Why is 21st Cent. Mgmt. falling/rising?
39 seconds ago
share
Share Via
Why is Spice IslandsInd falling/rising?
48 seconds ago
share
Share Via