Is Roadstar Infra overvalued or undervalued?

As of 20 August 2025, the valuation grade for Roadstar Infra has moved from risky to expensive, indicating a shift in perception regarding its financial health and market position. The company is currently considered overvalued. Key ratios include a PE ratio of -936.98, an EV to EBITDA of 11.17, and a Price to Book Value of 0.71, which highlight significant concerns about profitability and valuation relative to its assets.
In comparison to peers, Roadstar Infra's valuation metrics stand out unfavorably. For instance, Larsen & Toubro has a PE ratio of 31.88 and an EV to EBITDA of 16.62, while IRB Infrastructure Development shows a PE of 32.26 and an EV to EBITDA of 11.9. These comparisons suggest that Roadstar Infra is trading at a premium despite its negative earnings, reinforcing the view that it is overvalued. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-month return of 40.63% compared to the Sensex's 0.12%, but this does not mitigate the underlying valuation concerns.