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. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 174, which is significantly higher than its peer Brookfield Infrastructure Partners LP at 12.40 and the industry average. Additionally, the EV to EBITDA ratio stands at 13.46, which also suggests a premium valuation compared to peers like Brookfield Renewable Corp. with a ratio of 7.79.
The company’s return performance shows a mixed picture; while it has outperformed the S&P 500 over the past year with a return of 27.62% compared to 14.08%, it has lagged behind in the longer term, particularly over three years, where it returned only 34.09% against the S&P 500's 81.19%. Overall, these factors indicate that ReNew Energy Global Plc is overvalued in the current market environment.