Is Sterling & Wils. overvalued or undervalued?

As of 9 July 2025, Sterling & Wilson's valuation grade has moved from fair to expensive, indicating a shift in its perceived market value. The company is currently overvalued, with a PE ratio of 95.00, a Price to Book Value of 7.68, and an EV to EBITDA ratio of 32.28. These figures suggest that investors are paying a premium for the stock relative to its earnings and book value.
In comparison to its peers, Sterling & Wilson stands out with a significantly higher PE ratio than companies like Ircon International, which has a PE of 25.08, and Craftsman Auto with a PE of 67.87. While the PEG ratio of 0.69 indicates potential growth, the overall valuation metrics suggest that the stock is not justified at its current price of 331.40. Notably, the company's recent stock performance has been underwhelming, with a year-to-date return of -27.87% compared to the Sensex's 6.91%, reinforcing the notion that it may be overvalued in the current market environment.