Is Servotech Renew overvalued or undervalued?

As of 14 October 2025, the valuation grade for Servotech Renew has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE Ratio of 83.56, an EV to EBITDA of 49.07, and a Price to Book Value of 11.83. These figures indicate that the market is pricing the stock at a premium compared to its earnings and book value.
In comparison to its peers, Servotech Renew's PE Ratio is significantly higher than that of Apar Industries, which has a PE of 38.47 and is rated fair. Additionally, Siemens Energy, categorized as very expensive, has a PE of 115.47, further illustrating the disparity in valuation within the sector. Recent stock performance shows that Servotech Renew has underperformed the Sensex, with a year-to-date return of -25.63% compared to the Sensex's 6.35%, reinforcing the notion that the stock may be overvalued in the current market environment.