Is ReNew Energy Global Plc overvalued or undervalued?

As of 31 October 2025, the valuation grade for ReNew Energy Global Plc 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, compared to its peers like Brookfield Infrastructure Partners LP, which has a P/E of 12.40, and Brookfield Renewable Corp., which is currently at -3.09. Additionally, ReNew's EV to EBITDA ratio stands at 13.46, while its peer average suggests more favorable valuations in the industry.
With a return of 33.22% over the past year, ReNew outperformed the S&P 500's 19.89% return, but its longer-term performance of 29.78% over three years lags significantly behind the S&P's 76.66%. Overall, given the high valuation ratios and the comparison with peers, ReNew Energy Global Plc is considered overvalued.