Is Sterling & Wils. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Sterling & Wils. has moved from very attractive to attractive. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a PE ratio of 25.71, an EV to EBITDA of 22.89, and a PEG ratio of 0.05, which indicates a high valuation relative to its growth prospects.
In comparison to its peers, Sterling & Wils. has a PE ratio that is significantly lower than Rail Vikas, which stands at 55.79, and Tube Investments at 91.93, both of which are classified as very expensive. Other peers like Ircon International, which is rated attractive, has a PE of 23.05, suggesting that Sterling & Wils. may not offer sufficient value at its current price of 230.25. Notably, the company's stock has underperformed significantly compared to the Sensex, with a year-to-date return of -49.89% versus the Sensex's 6.50%.