Is Servotech Renew overvalued or undervalued?

As of 29 September 2025, the valuation grade for Servotech Renew has moved from very expensive to expensive, indicating a slight improvement in its perceived value. Despite this change, the company remains overvalued based on its current metrics. The PE ratio stands at 86.35, the Price to Book Value is 11.79, and the EV to EBITDA is 48.89, all of which are significantly higher than industry norms.
In comparison to its peers, Servotech Renew's valuation appears excessive. For instance, Siemens Energy has a PE ratio of 127.71, while ABB has a PE of 61.38, both of which are still lower than Servotech's. Additionally, the PEG ratio of 0.53 suggests that Servotech may not be growing fast enough to justify its high valuation. The company's recent stock performance has been disappointing, with a year-to-date return of -25.9%, contrasting sharply with the Sensex's positive return of 4.19% during the same period. Overall, Servotech Renew is deemed overvalued in the current market context.