Is Solex Energy overvalued or undervalued?

As of 25 August 2025, Solex Energy's valuation grade has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 36.32, a Price to Book Value of 31.10, and an EV to EBITDA ratio of 22.10. These figures suggest that investors are paying a premium for the stock relative to its earnings and book value.
In comparison to its peers, Solex Energy's PE ratio is notably lower than Siemens Energy Industries at 122.87 and ABB at 60.16, but still higher than Apar Industries, which is fairly valued at 36.81. The PEG ratio of 0.11 also indicates that the stock may not be justified by its growth prospects. Despite a strong return over the past three years, Solex Energy's recent performance has lagged behind the Sensex, with a year-to-date return of -5.2% compared to the Sensex's 5.60%. This combination of high valuation ratios and underperformance suggests that Solex Energy is indeed overvalued in the current market.