Is Servotech Renew overvalued or undervalued?

As of 28 August 2025, the valuation grade for Servotech Renew has moved from very expensive to expensive, indicating a slight improvement in perceived value. Despite this change, the company is still considered overvalued. Key ratios include a PE ratio of 85.61, an EV to EBITDA of 48.48, and a PEG ratio of 0.53, all of which suggest that the stock is priced significantly higher than its earnings and growth potential would justify.
In comparison to peers, Servotech Renew's PE ratio is notably higher than that of Apar Industries, which stands at 35.14, and significantly above the industry average. Additionally, Siemens Energy has a PE ratio of 122.78, but its EV to EBITDA is drastically higher at 490.77, reinforcing the notion that Servotech is still on the expensive side relative to its peers. The company's recent stock performance has also lagged behind the Sensex, with a year-to-date return of -26.74% compared to the Sensex's 3.62%, further supporting the view that Servotech Renew is overvalued.