Is Rexnord Electr. overvalued or undervalued?

As of 20 June 2025, Rexnord Electr. has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 25.34, an EV to EBITDA of 10.09, and a ROCE of 7.51%. In comparison to its peers, Metro Brands is considered very expensive with a PE of 88.61, while V-Guard Industries is also fair with a PE of 52.16, indicating that Rexnord is positioned more favorably in terms of valuation metrics.
Despite its fair valuation, Rexnord has underperformed against the Sensex over various periods, notably with a 1-year stock return of -28.96% compared to the Sensex's 6.36%. This underperformance, alongside its current ratios, suggests that while the company is not undervalued, it may face challenges in achieving growth relative to its peers and the broader market.