Is Roadstar Infra overvalued or undervalued?

As of 8 August 2025, Roadstar Infra's valuation grade has moved from expensive to fair. The company appears to be fairly valued at this time, despite having a notably negative PE ratio of -780.82, a price-to-book value of 0.60, and an EV to EBITDA ratio of 10.12. These figures suggest that while the company is not currently overvalued, its financial health may raise concerns due to the negative earnings reflected in the PE ratio.
In comparison to its peers, Roadstar Infra's EV to EBITDA ratio of 10.12 is significantly lower than Larsen & Toubro's 16.69, indicating a more favorable valuation in terms of earnings potential. However, it is worth noting that Siemens and CG Power & Ind are classified as very expensive, with EV to EBITDA ratios of 48.44 and 76.28, respectively. This peer comparison reinforces the notion that Roadstar Infra is not overvalued in its current state. Additionally, the company's recent stock performance has outpaced the Sensex over the past week, with a return of 20% compared to the Sensex's decline of 0.92%, which may reflect positive market sentiment towards its valuation.