Is Servotech Renew overvalued or undervalued?

As of 4 September 2025, the valuation grade for Servotech Renew has moved from very expensive to expensive. The company is currently considered overvalued based on its high PE ratio of 86.49, an EV to EBITDA ratio of 48.97, and a Price to Book Value of 11.81. These ratios indicate that the stock is trading at a premium compared to its earnings and book value, suggesting that investors may be paying too much for the expected growth.
In comparison to its peers, Servotech Renew's valuation metrics are significantly higher than those of Apar Industries, which has a PE ratio of 35.96 and an EV to EBITDA of 19.29, indicating a more attractive valuation. Additionally, Siemens Energy, classified as very expensive, has a PE ratio of 123.01, but it also highlights the relative overvaluation of Servotech Renew within its industry. Despite a strong historical performance over the long term, recent returns show that Servotech has underperformed the Sensex year-to-date and over the past year, further reinforcing the notion of its current overvaluation.