Is Simplex Infra overvalued or undervalued?

As of 17 November 2025, the valuation grade for Simplex Infra has moved from risky to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its high PE ratio of 68.03, an EV to EBITDA of 103.61, and a Price to Book Value of 4.47. These ratios suggest that investors are paying a premium for the company's earnings and assets compared to its peers.
In comparison to its industry peers, Simplex Infra's valuation stands out significantly. For instance, Larsen & Toubro, which is rated attractive, has a PE ratio of 34.55 and an EV to EBITDA of 18.21, while IRB Infrastructure Development, categorized as expensive, has a PE ratio of 30.72 and an EV to EBITDA of 11.75. This stark contrast highlights that Simplex Infra is trading at a much higher valuation than its competitors, reinforcing the conclusion that it is overvalued. Despite a strong historical performance over the long term, recent returns indicate a decline compared to the Sensex, with a year-to-date return of -1.33% against the Sensex's 8.72%.