Is Solex Energy overvalued or undervalued?

As of 13 May 2025, the valuation grade for Solex Energy has moved from does not qualify to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 34.94, a Price to Book Value of 29.92, and an EV to EBITDA of 21.31, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, Solex Energy's PE Ratio of 34.94 is notably higher than the industry average, reflecting its expensive valuation. For instance, if we consider similar companies, they typically exhibit lower PE ratios, which further emphasizes Solex's overvaluation. Additionally, while the stock has demonstrated strong returns over the past year at 12.28%, it has underperformed the Sensex's return of 7.87% during the same period, reinforcing the notion that its current price may not be justified by its fundamentals.