Is ReNew Energy Global Plc overvalued or undervalued?

As of 31 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 given its high P/E ratio of 174, especially when compared to peers like Brookfield Renewable Corp. with a P/E of -3.09 and Sunrun, Inc. at -2.82. Additionally, the EV to EBITDA ratio of 13.46 further supports this assessment, as it is significantly higher than the industry average reflected by its peers.
In comparison to the S&P 500, ReNew Energy has shown a strong one-year return of 33.22%, outperforming the index's 19.89% return, but its three-year return of 29.78% lags behind the S&P 500's impressive 76.66%. This discrepancy suggests that while the stock has performed well recently, its current valuation may not be justified by its growth prospects and profitability metrics, leading to the conclusion that ReNew Energy Global Plc is overvalued.