Is Siemens Ener.Ind overvalued or undervalued?

As of 9 July 2025, the valuation grade for Siemens Ener.Ind has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued, with a PE ratio of 113.53, an EV to EBITDA ratio of 453.83, and a Price to Book Value of 28.87. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Siemens Ener.Ind's valuation appears excessive. For instance, A B B has a PE ratio of 66.23 and an EV to EBITDA of 51.49, while BHEL shows a PE of 170.87 and an EV to EBITDA of 74.61. These figures highlight that Siemens Ener.Ind is trading at much higher multiples than its competitors, reinforcing the conclusion that it is overvalued. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-week return of 6.15% compared to the Sensex's 0.15%, although this does not mitigate the overall valuation concerns.