Is Sterling & Wils. overvalued or undervalued?

As of 2 July 2025, the valuation grade for Sterling & Wils. has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 89.43, an EV to EBITDA ratio of 30.43, and a PEG ratio of 0.65. In comparison to peers, Rail Vikas is classified as very expensive with a PE of 63.88, while Ircon International is also rated fair with a PE of 26.01, highlighting Sterling & Wils.'s relatively high valuation metrics within its industry.
Despite the recent shift in valuation, Sterling & Wils. has underperformed against the Sensex, with a year-to-date stock return of -32.1% compared to the Sensex's 6.75%. This performance, along with the company's high valuation ratios, suggests that while it is currently fairly valued, there may be concerns regarding its future growth and market positioning.