Is RMC Switchgears overvalued or undervalued?

As of 28 August 2025, RMC Switchgears has moved from a fair valuation to very expensive. The company is currently overvalued based on its financial ratios. The PE ratio stands at 26.98, while the EV to EBITDA ratio is 16.98, and the PEG ratio is notably low at 0.32, indicating a potential disconnect between growth expectations and current pricing.
In comparison to its peers, RMC Switchgears is positioned unfavorably against Siemens Energy, which has a PE ratio of 122.78, and ABB with a PE of 58.94, both categorized as very expensive. The high valuation of RMC Switchgears is further underscored by its recent stock performance, which has underperformed the Sensex, with a year-to-date return of -28.13% compared to the Sensex’s 2.48%. Overall, the combination of high valuation ratios and poor stock performance suggests that RMC Switchgears is overvalued in the current market.