Is Roadstar Infra overvalued or undervalued?

As of 4 August 2025, Roadstar Infra's valuation grade has moved from fair to expensive, indicating that the company is currently overvalued. Key ratios highlight this assessment, with a PE ratio of -936.98, an EV to EBITDA of 11.17, and a Price to Book Value of 0.71. These figures suggest that the company's valuation does not align well with its financial performance, particularly given the negative PE ratio.
In comparison to its peers, Roadstar Infra's valuation stands out unfavorably. For instance, Larsen & Toubro, which is rated as fair, has a PE ratio of 32.2 and an EV to EBITDA of 16.77, while IRB Infra Development, also expensive, shows a PE of 35.48 and an EV to EBITDA of 12.35. The stark contrast in these ratios reinforces the conclusion that Roadstar Infra is overvalued. Additionally, the company's recent stock performance has significantly outpaced the Sensex over the past week, with a return of 40.63% compared to the Sensex's 0.16%, although this does not mitigate the overall valuation concerns.