Is ReNew Energy Global Plc overvalued or undervalued?

As of 17 October 2025, the valuation grade for ReNew Energy Global Plc has moved from very attractive to attractive, indicating a shift in its perceived value. The company appears to be overvalued based on its high P/E ratio of 174, significantly above the industry average, and a Price to Book Value of 2.20. Additionally, the EV to EBITDA ratio stands at 13.46, which further suggests that the company may not be priced favorably compared to its earnings potential.
In comparison to peers, Brookfield Infrastructure Partners LP has a much lower P/E ratio of 12.40 and an EV to EBITDA of 7.92, while Brookfield Renewable Corp. is currently rated as risky with a negative P/E. This highlights a stark contrast in valuation metrics within the sector. Notably, ReNew Energy has underperformed against the S&P 500 over the 1-week and 1-month periods, but it has outperformed over the 1-year period with a return of 27.62% compared to the S&P 500's 14.08%. Overall, the combination of high valuation ratios and peer comparisons suggests that ReNew Energy Global Plc is currently overvalued.