Is Servotech Renew overvalued or undervalued?

As of 16 October 2025, the valuation grade for Servotech Renew has moved from expensive to very expensive, indicating a significant shift in its market perception. The company appears to be overvalued at this time. Key ratios such as the PE Ratio at 83.58, EV to EBITDA at 49.08, and Price to Book Value at 11.84 suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, Servotech Renew's PE ratio is notably higher than that of Apar Industries, which stands at 39.86, and ABB, which has a PE of 61.27. Furthermore, while Servotech's PEG ratio of 0.49 indicates potential growth, the overall high valuation metrics, combined with recent stock performance lagging behind the Sensex, reinforce the conclusion that the stock is overvalued. Over the past year, Servotech has seen a decline of 34.1%, contrasting sharply with the Sensex's modest gain of 2.46%.