Is ReNew Energy Global Plc overvalued or undervalued?

As of 22 August 2025, ReNew Energy Global Plc has moved from a very attractive to an attractive valuation grade. The company appears to be overvalued based on its high P/E ratio of 174, compared to its peers such as Brookfield Infrastructure Partners LP with a P/E of 12.40 and Brookfield Renewable Corp. which has a negative P/E ratio. Additionally, ReNew's EV to EBITDA stands at 13.46, which is significantly higher than its peer average, indicating a premium valuation.
In terms of return performance, ReNew Energy has outperformed the S&P 500 on a year-to-date basis with a return of 13.03% compared to the S&P 500's 12.22%. However, over a three-year period, the company's return of 10.44% falls short of the S&P 500's impressive 70.41%. Given the high valuation ratios and the mixed performance against the benchmark, ReNew Energy Global Plc is currently considered overvalued.