Is Solarium Green overvalued or undervalued?

As of 10 October 2025, the valuation grade for Solarium Green has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued. Key ratios include a PE ratio of 38.65, an EV to EBITDA ratio of 27.40, and a ROCE of 18.87%.
In comparison to its peers, Solarium Green's PE ratio is lower than Waaree Energies at 43.15 and NTPC Green Energy at 171.52, but still reflects a premium valuation in the current market context. The company's recent stock performance shows a 2.59% return over the past week, outperforming the Sensex's 1.59% return, but it has struggled over the past month with a decline of 6.85% compared to the Sensex's modest gain of 1.32%. Overall, the elevated valuation ratios suggest that Solarium Green is not a compelling investment at its current price level.