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 perceived value. The company appears to be overvalued, given 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 is currently risky with a negative P/E. Additionally, ReNew's EV to EBITDA ratio stands at 13.46, which is significantly higher than the industry average, suggesting that investors are paying a premium for its earnings.
In terms of return performance, ReNew Energy has shown a year-to-date return of 12.3%, which is slightly below the S&P 500's return of 13.30%. However, over the past year, ReNew has outperformed the S&P 500 with a return of 27.62% compared to the index's 14.08%. This mixed performance, combined with its high valuation ratios, reinforces the conclusion that the stock is currently overvalued.