Is Solitaire Mach. overvalued or undervalued?

As of 10 February 2025, the valuation grade for Solitaire Mach. has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE ratio of 29.03, an EV to EBITDA of 22.82, and a Price to Book Value of 3.48, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, Solitaire Mach. has a PE ratio of 29.03, while Rail Vikas stands at a much higher 69.76, and Tube Investments at 87.5, both classified as very expensive. Notably, Ircon International, which is rated fair, has a PE ratio of 28.25, indicating that Solitaire Mach. is priced significantly higher than some of its peers despite its high valuation grade. Additionally, while the stock has outperformed the Sensex over the past year with an 83.17% return compared to the Sensex's 7.59%, the current valuation suggests that investors may be paying too much for future growth potential.