Is Reliance Power overvalued or undervalued?

Oct 15 2025 08:04 AM IST
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As of October 14, 2025, Reliance Power is considered undervalued with an attractive valuation grade, despite a negative PE ratio of -3611.41, and has outperformed the Sensex with a return of 177.66% over the past three years.
As of 14 October 2025, Reliance Power's valuation grade has moved from fair to attractive, indicating a shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of -3611.41, an EV to EBITDA of 16.24, and a Price to Book Value of 1.14.

In comparison to its peers, NTPC has a PE ratio of 13.63 and an EV to EBITDA of 10.73, while Tata Power Co. shows a PE ratio of 30.26 and an EV to EBITDA of 12.24. Despite the negative PE ratio, Reliance Power's performance has outpaced the Sensex over the past three years, with a return of 177.66% compared to the Sensex's 41.63%. This suggests that the market may be underestimating the company's potential, reinforcing its undervalued status.
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