Is Sterling & Wils. overvalued or undervalued?

As of 18 July 2025, the valuation grade for Sterling & Wilson has moved from expensive to fair, indicating a shift in market perception. The company appears fairly valued at this time. Key ratios include a PE ratio of 68.54, an EV to EBITDA of 25.08, and a PEG ratio of 0.35, suggesting that while the PE ratio is high, the growth potential reflected in the PEG ratio is favorable.
In comparison to its peers, Sterling & Wilson's PE ratio is higher than Rail Vikas at 61.18 and significantly above Ircon International, which stands at 24.17. Despite this, the PEG ratio of 0.35 indicates that the stock may be undervalued relative to its growth prospects. Notably, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -30.21% compared to the Sensex's 4.63%, reinforcing the notion that the market may have overreacted to its recent challenges.