Is Servotech Renew overvalued or undervalued?

As of 8 September 2025, the valuation grade for Servotech Renew has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued based on its high ratios, including a PE ratio of 91.65, an EV to EBITDA ratio of 51.86, and a Price to Book Value of 12.51. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Servotech Renew's valuation appears excessive, especially when contrasted with Siemens Energy Industries, which has a PE ratio of 126.55, and ABB, with a PE ratio of 60.32. Notably, Apar Industries is more attractively valued with a PE ratio of 35.64, indicating that Servotech Renew's current pricing may not be justified. Despite a strong historical return of 6064.32% over five years, recent performance shows a decline of 21.21% year-to-date, further supporting the conclusion that the stock is overvalued relative to its fundamentals and market peers.