Is Servotech Renew overvalued or undervalued?

As of 17 October 2025, the valuation grade for Servotech Renew has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting high valuations. The company is currently considered overvalued based on its high PE ratio of 83.33, an EV to EBITDA of 48.94, and a Price to Book Value of 11.80. These ratios significantly exceed those of its peers, such as Apar Industries, which has a PE ratio of 39.48 and an EV to EBITDA of 21.21, highlighting the premium placed on Servotech Renew's stock.
In comparison to the broader market, Servotech Renew has underperformed, with a year-to-date return of -25.83% against a Sensex return of 8.73%. This underperformance, combined with its elevated valuation ratios, reinforces the conclusion that Servotech Renew is overvalued in the current market environment.